Starbucks Announces CEO Transition
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After 13 years at Starbucks, including five as CEO and president, Kevin Johnson will retire. Company founder Howard Schultz will serve as interim executive as the search for a replacement begins.
The company statement includes the typical quotes: the board chair complimenting Johnson’s accomplishments, Johnson expressing pride and gratitude, and Schultz providing a vision. Of course, the company doesn’t explicitly address two of the biggest challenges Schultz will face, which a Wall Street Journal article calls out in the headline, “Former Starbucks CEO Howard Schultz to Return as Chain Faces Union Push, Rising Costs.”
Shares declined 24% in the past year, and it’s been a rough time for the company, as for all restaurants trying to regain their footing after the pandemic amidst rising prices, staffing shortages, and wage increases. In the statement, Johnson says that he notified the board a year ago of his plan to leave, and the WSJ article confirms the story with a quote from the board chair, “His decision to leave was his own, not the result of any board or outside push, she said.”
We’ll never know the truth, and expecting full transparency in these situations isn’t realistic. Perhaps it’s a mix, anyway. The board may want a leadership change to address difficult issues, including improving relations with employees and unions, and Johnson felt internal and external pressure to leave.
