News

Starbucks CEO steps down

June 5, 2018

Starbucks Corporation Executive Chairman and — until last year — CEO of four decades, Howard Schultz, is stepping down. He leaves a huge trail of successes in his wake, including a 21,000 percent gain in stock value since the brand's IPO in 1992 and a reputation as a company known for doing good in a highly competitive industry. 

A news release said Schultz will relinquish his position as executive chairman and member of the board on June 26, when he will the honorary title of chairman emeritus effective.

"Because of your creativity, your hard work, and the love that you have poured into the company, Starbucks today is widely embraced and respected," Schultz told those who work at the company in a letter addressed to them late Monday. "As I prepare to step away, I'd like to humbly remind you not to lose sight of what matters most — your fellow partners and our customers."

The company said that under Schultz's leadership the brand's global growth was accelerated by his decisions to provide uncommon benefits for those who work for Starbucks, including comprehensive healthcare, stock ownership and free college tuition, even for those working part-time.

Schultz's journey began as director of operations at Starbucks in 1981, where he pushed for the brand to use the highest quality coffee after a business trip to Italy, where he was captivated by the sense of community, romance and even theater found in Italian coffee bars. In the ensuing years, he purchased the company with local investor support and pledged to make a career out of bringing his vision of a modern coffee house to life in America and around the world.

This year, Starbucks was named the fifth most admired company in the world by Fortune, marking the sixteenth consecutive year the company has been listed on that global honor roll. Starbucks was also named one of the World's Most Ethical Companies by the Ethisphere Institute for the twelfth straight year and was ranked as one of 2018's Most Innovative Companies by Fast Company, most notably for its social-impact work.

Last April, he transitioned from CEO to executive chairman, shifting his full-time focus to the company's social impact initiatives as well as innovation and global development of the company's premium Reserve brand, including Starbucks Reserve Roasteries, Reserve stores and the company's partnership with renowned artisanal Italian bakery, Princi.

Following his transition off the Starbucks board at the end of June, Schultz will oversee the opening of the Starbucks Reserve Roastery in Milan on Sept. 6, marking the company's long-awaited entry into Italy. He will then oversee opening of the New York Roastery in late October this year.

Myron E. "Mike" Ullman steps into the role of the board's new chair, while Mellody Hobson will serve as vice chair effective upon Schultz's retirement.