Starbucks Expected to Name a New CEO Before Fall as Howard Schultz Plans to Step Down

This is an English adaptation of a FoodBud historical article originally published on June 6, 2022.

According to The Wall Street Journal, Starbucks was considering only external candidates for its next chief executive officer. Interim CEO Howard Schultz said the company needed to add new capabilities and skills to its senior leadership team.

Schultz had already said he would not compete for the permanent CEO role. He said Starbucks had recently spoken with several promising CEO candidates, with a goal of confirming a new CEO before the fall. Schultz also said he planned to step down before the company’s shareholder meeting in March of the following year.

Why Starbucks Wanted an Outside Leader

Schultz said Starbucks needed experience and expertise in areas it did not currently have.

He said this meant Starbucks needed “a different type of leader” for its future development.

Schultz returned to Starbucks in April as interim CEO, replacing Kevin Johnson. It was his third time leading the company. Schultz is widely associated with transforming Starbucks from a local Seattle coffee chain into a global company.

After returning, Schultz reportedly often arrived at headquarters by 7 a.m. and participated in meetings across a range of company decisions.

Schultz’s Ongoing Role

When Schultz returned as interim CEO, he also joined the board. He said he would remain on the board after stepping down as CEO, describing himself as someone who could help the company achieve a smooth transition.

Starbucks in 2022 was different from the company Schultz left when he stepped down as CEO in 2017. Schultz said some of Starbucks’ challenges were self-created, while others came from the pandemic. A large share of sales now came from takeaway cold beverages rather than dine-in hot drinks, which had been central to the company’s early model.

Executive Changes

After returning, Schultz asked some senior employees to leave in order to make room for new executives.

In May, Starbucks said its head of human resources and two vice presidents responsible for public affairs and public policy would depart. Two of those executives had worked at Starbucks for more than 15 years.

Investor Questions

At the time, Schultz was Starbucks’ fourth-largest shareholder. Some investors and former company executives questioned whether he would truly step back from Starbucks in the future.

Schultz said he was encouraged by the diversity and quality of the CEO candidates under consideration. He said his only concern was whether the next CEO would succeed.

Note: CEO timing, shareholder-position references, and other forward-looking details are historical as of the article’s June 6, 2022 publication date.