Former Starbucks CEO Howard Schultz Steps Down from Company’s Board
Seattle, Washington – In a surprising move, former Starbucks CEO Howard Schultz has announced his decision to step down from the coffee chain’s board. The company confirmed the news on Wednesday, stating that the change was part of a planned transition.
“I look forward to supporting this next generation of leaders to steward Starbucks into the future as a customer, supporter, and advocate in my role as chairman emeritus,” Schultz said in a statement.
Schultz, who led Starbucks as CEO for three separate stints, did not provide a reason for his exit. His most recent tenure as chief executive ended in March, when Laxman Narasimhan took over the role. During his time back at the helm, Schultz implemented a strategy to modernize Starbucks’ cafes, improve barista relations, and drive sales growth. He also introduced a new line of olive oil-infused beverages called Starbucks Oleato.
However, some of Schultz’s actions during this period drew criticism. His aggressive approach towards baristas unionizing, compared to his successor Kevin Johnson, made him the face of Starbucks’ anti-union stance. Starbucks Workers United and allies, including Senator Bernie Sanders, intensified their opposition against Schultz. This ultimately led to him being grilled in front of a Senate committee over the company’s alleged union busting shortly after his resignation as CEO.
Schultz had previously left Starbucks’ board in June 2018 as he considered a potential presidential run, although he ultimately decided against it. At that time, he had already handed over the CEO role to Johnson in 2017.
Following Schultz’s departure, Wei Zhang will assume his seat on the board. Zhang, a former senior advisor to Alibaba and president of Alibaba Pictures Group, brings valuable experience from the Chinese e-commerce giant. This could prove instrumental for Starbucks as it aims to revive its Chinese business, which is the company’s second-largest market. Zhang’s familiarity with trends such as mobile ordering in China has already influenced changes in Starbucks’ U.S. operations.
Zhang’s previous roles include positions at News Corp China, CNBC China, Bain, and General Electric. She currently serves on Ralph Lauren’s board. With her appointment, Zhang becomes the third woman on Starbucks’ nine-person board, joining Chair Mellody Hobson and Land O’Lakes CEO Beth Ford.
The departure of Schultz and the arrival of Zhang mark a significant change for Starbucks’ leadership. As the company continues to navigate the challenges posed by the evolving coffee market, industry analysts eagerly await the strategic direction that the new board composition may bring.
Disclosure: CNBC China is an affiliate of CNBC.