Howard Schultz Back In Charge At Starbucks ... Temporarily

SEATTLE, WA —Starbucks announced Wednesday that President and CEO Kevin Johnson will transition out of his role in April and founder and former CEO Howard Schultz will replace him on an interim basis.

Schultz, who led the company from 1987 to 2018 and built Starbucks into a global brand, will serve as president and CEO until the board of directors selects a new leader, which the company said will happen by the fall.

"When you love something, you have a deep sense of responsibility to help when called," Schultz said. "Although I did not plan to return to Starbucks, I know the company must transform once again to meet a new and exciting future where all of our stakeholders mutually flourish."

According to the company, as interim CEO Schultz will focus on "setting an innovation framework," while also coaching and onboarding the next permanent CEO.

Schultz is volunteering his time as interim CEO and will receive $1 of compensation, the company said.

Johnson, who has served on the Starbucks Board of Directors since 2009, replaced Schultz as president and CEO in 2017.

Though he will leave that position on April 4, Johnson will continue to serve as a Starbucks employee and special consultant to the company and board of directors until he retires in September, the company said.

Johnson said he had informed the board last year that he was thinking about retirement.

"A year ago, I signaled to the board that as the global pandemic neared an end, I would be considering retirement from Starbucks," Johnson said. "I feel this is a natural bookend to my 13 years with the company. As I make this transition, we are very fortunate to have a founder who is able to step in on an interim basis, giving the board time to further explore potential candidates and make the right long-term succession decision for the company."

Johnson continued: "I have enjoyed every minute of the job and am proud of what we have achieved together. It has been an honor to serve the 400,000 Starbucks green apron partners around the world and I want to thank them for their service, resilience and optimism."

A spokesperson for the company said the board of directors has been engaged in CEO succession planning, assisted by Russell Reynolds Associates, since 2001.

In a release, the company said Johnson's accomplishments included "establishing the People Positive, Planet Positive and Profit Positive framework that seeks to create a better world for Starbucks partners, farmers, customers and the communities it serves. "

Johnson also expanded the company's reach through the Global Coffee Alliance with Nestlé, which now operates in nearly 80 markets, and he established and executed the "Growth at Scale" agenda that significantly increased shareholder value, the company said.

Mellody Hobson, chair of the Independent Starbucks Board of Directors, thanked Johnson for his service to the company and leadership, especially during the pandemic.

"(Johnson) and the entire executive team stepped up to the challenge of the pandemic and navigated one of the most difficult periods in modern history," Hobson said. "The economic certainty provided to partners during the early months of the COVID shutdown, as well as during mandatory quarantines, underscores our core values and will be an enduring legacy for the company.

Hobson added: "During Kevin's tenure, Starbucks scaled an industry-leading digital offering spanning nearly 45 million Starbucks Rewards members in the U.S. and China."