“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 in a statement. “I feel this is a natural bookend to my 13 years with the company.”
Johnson will stay on as a special consultant to the company and its board through September.
“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 added.
In a video message, Johnson said that “Starbucks has been a gift in my life,” adding that he is “filled with gratitude and optimism for the future.” He, along with Mellody Hobson, independent chair of the board of directors, will share more during the company’s annual shareholder meeting later on Wednesday.
Starbucks’ stock hit an all-time high in July 2021, along with other restaurant stocks that soared that summer. Johnson executed several strategies that proved successful, including expansion in China, improving the company’s rewards program and improving its technology.
Meanwhile, Starbucks shares are down about 24% over the past year, though the stock popped 7% on Wednesday on the news.
The Starbucks board engaged executive search firm Russell Reynolds Associates to help look for a replacement for Johnson last year, the company said. Schultz will also help look for a new, permanent CEO, as well as help manage the day-to-day business, Starbucks said. For his services, he’s earning $1.
“When you love something, you have a deep sense of responsibility to help when called,” Schultz said in a statement. “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.”
Schultz first served as Starbucks’ chief executive from 1987 to 2000. He returned as CEO in 2008, and remained in the post until he handed the reins over to Johnson in 2017. He stepped down as executive chairman and member of the board in 2018.
“No partner has ever needed to have a representative seek to obtain things we all have as partners at Starbucks,” he wrote. “And I am saddened and concerned to hear anyone thinks that is needed now.”
“Howard has a tremendous track record of success running the company,” Edward Jones analyst Brian Yarbrough told CNN Business, adding that he “did a great job when he stepped back in the CEO prior.”
Cowen analyst Andrew Charles wrote in a note Wednesday that “we are a bit surprised the company is exploring external candidates, as there are several top executives who come to mind that have worked under Howard Schultz,” he wrote. “However, unionization publicity could be a factor pushing the company to look externally.”
Already, half a dozen stores have voted to unionize with several others preparing for their own votes.