Is Howard Schultz Leaving Starbucks Board? Why is Howard Schultz Leaving Starbucks? Where is Howard Schultz Going After Leaving Starbucks?
by Alaguvelan M
Updated Sep 14, 2023
Is Howard Schultz Leaving Starbucks Board?
Yes, Howard Schultz is indeed leaving the Starbucks board. The company confirmed that Schultz, who founded Starbucks in 1987, will step down from the board starting on Wednesday. Schultz is renowned for turning Starbucks into a global coffee giant with thousands of locations worldwide. He played a significant role in shaping Starbucks as a place for people to enjoy coffee and connect, often referred to as a "third place" between home and work.
Over the years, Schultz served as CEO three times and returned twice to guide Starbucks through challenging periods. Last year, he appointed Laxman Narasimhan as the first external CEO of Starbucks. Additionally, the company announced the appointment of Wei Zhang, previously a senior adviser to Alibaba Group, as a director, effective from October 1. Zhang's experience is critical to Starbucks' growth in China, its second-largest market.
During Schultz's most recent term as CEO, Starbucks underwent significant changes, with a shift towards more cold beverages, increased use of the mobile app and drive-thrus, and greater customization of drinks. Schultz also had to address labor-related challenges, including a unionization campaign and accusations of labor law violations. Following this news, Starbucks' stock experienced a minor drop of less than 1%, while the S&P 500 restaurant index saw a 7% increase this year.
Fresherslive consistently delivers ongoing news and trending topics in a straightforward manner, making it effortless for you to stay informed. We prioritize clarity and simplicity in our communication.
Why is Howard Schultz Leaving Starbucks?
Howard Schultz, the influential figure behind Starbucks' transformation into a global coffee powerhouse, is resigning from the coffee chain's board of directors. Starbucks stated that this departure is part of a planned transition, marking a significant moment in the company's history. Schultz, who initially purchased Starbucks in 1987, played a pivotal role as CEO in two separate stints, shaping the brand into the iconic coffee destination it is today.
Schultz expressed his gratitude to Starbucks employees and stakeholders, emphasizing his commitment to support the next generation of leaders in his role as chairman emeritus. His decision comes after Laxman Narasimhan assumed the CEO role last year, and Schultz stepped down as interim CEO earlier this year.
While Starbucks continues to report strong financial performance, Schultz's departure coincides with the company facing scrutiny and allegations of labor law violations in the context of workers' unionization efforts. Schultz defended Starbucks against these claims, maintaining the company's commitment to fair wages and benefits for employees while opposing unionization.
Where is Howard Schultz Going After Leaving Starbucks?
Howard Schultz is stepping down from the company's board as part of a planned transition. But, the specific reason for his departure is not mentioned, Schultz expressed his intention to support the next generation of Starbucks leaders in his role as chairman emeritus.
After concluding his third stint as CEO in March, where he focused on modernizing Starbucks cafes and improving relations with baristas, Schultz found himself at the center of controversy due to his firm stance against baristas' unionization efforts. This eventually led to him testifying before a Senate committee on the allegations of union-busting within the company.
As Schultz leaves Starbucks' board, Wei Zhang, a former senior advisor to Alibaba and president of Alibaba Pictures Group, will take his place. Zhang's experience in the Chinese e-commerce industry may prove valuable to Starbucks, particularly in its second-largest market, China. There, trends like mobile ordering have influenced Starbucks' strategies in the United States. Moreover, Zhang's appointment increases gender diversity on Starbucks' board, which now includes three women out of nine members.
Who is Howard Schultz?
Howard Schultz is an American entrepreneur known for his leadership at Starbucks, where he served as CEO in multiple stints, transforming it from a coffee bean seller to a global coffee powerhouse. Born in 1953 in Brooklyn, New York, Schultz faced financial hardships during his upbringing.
After graduating from Northern Michigan University, he worked at Xerox as a salesman. In 1982, he joined Starbucks as the director of retail operations and marketing but was dissatisfied with the focus on coffee beans. Schultz envisioned Starbucks as a social space, leading him to start Il Giornale in 1985 and eventually purchase Starbucks in 1987.
Schultz's leadership propelled Starbucks into a global coffee giant. He expanded the brand into new markets, introduced new products, and emphasized employee satisfaction and customer service. While Schultz stepped down as CEO in 2000, he returned in 2008 to guide the company's growth and innovation. Although he retired as CEO again in 2017, he continued as chairman until 2022.
Schultz is a polarizing figure, praised for his business acumen and commitment to social responsibility, yet criticized for his aggressive business tactics and anti-union stance. He remains a respected entrepreneur known for building an iconic brand and advocating for social and environmental causes.
Name
Howard D. Schultz
Born
July 19, 1953
Birthplace
Brooklyn, New York, U.S.
Education
Northern Michigan University (BA)
Occupations
Businessman, author
Years Active
1986–present
Known For
Leadership of Starbucks and co-ownership of Seattle SuperSonics
CEO Terms
1986–2000, 2008–2017, 2022–2023 (as interim CEO)
Howard Schultz Age
Howard Schultz is 70 years old, as of 2023. He was born on July 19, 1953. While Schultz may seem relatively young for a CEO, especially in a big company like Starbucks, he's had a long and successful career in business. He's not afraid to take risks and challenge how things are usually done.
Schultz's age can actually benefit Starbucks. He's still full of energy and fresh ideas, and at the same time, he has a ton of experience. He's highly respected in the business world and knows the coffee industry inside and out.
Is Howard Schultz Married?
Howard Schultz is married to Sheri Kersch Schultz, and they've been married since 1982. They have two kids.
Sheri Kersch Schultz is also successful in business. She's the boss at Schultz Family Reserve, a company that makes fancy coffee. She's also one of the people who started the Schultz Family Foundation, a group that helps with education and social justice.
Together, Howard Schultz and Sheri Kersch Schultz are a strong couple in the business world, and they've been happily married for more than 40 years.
Howard Schultz Career
In 1982, Howard joined Starbucks as the Director of Retail Operations and Marketing. Inspired by Italian coffee culture, Schultz dreamed of turning Starbucks into a place for people to enjoy quality coffee together. However, his idea didn't match the company's founders' vision, so he left Starbucks in 1985 to create his coffee company, Il Giornale.
In 1987, Schultz, with the help of investors, bought Starbucks and merged it with Il Giornale, becoming its CEO. Under his guidance, Starbucks expanded rapidly, opened new stores, and introduced innovative ideas. Schultz prioritized creating a special experience for customers, focusing on excellent service, and making Starbucks a "third place" between home and work.
Starbucks thrived globally under Schultz's leadership, going public in 1992 and expanding into international markets. Although Schultz stepped down as CEO in 2000, he returned in 2008 during a tough economic period, playing a vital role in revitalizing the company.
Schultz didn't limit his influence to Starbucks; he actively engaged in social and political causes, advocating for corporate responsibility and taking positions on healthcare reform and veterans' rights. He also considered running for President in 2020.
Howard Schultz's career illustrates his entrepreneurial spirit, visionary leadership, and dedication to building a successful and socially responsible company. His impact on the coffee industry and the broader business world makes him an influential figure in modern business history.
Starbucks
Starbucks is a big coffee company from America, based in Seattle, Washington. It's the largest coffee shop chain globally, with more than 30,000 stores in 80 countries. At Starbucks, you can buy coffee, pastries, and other food. They also sell things like coffee beans, mugs, and t-shirts.
Starbucks started back in 1971 when Jerry Baldwin, Zev Siegl, and Gordon Bowker founded it. At first, they called it Starbucks Coffee, Tea, and Spices. But in 1987, they changed the name to Starbucks Corporation.
People in Seattle really liked Starbucks, so it started opening in other U.S. cities in the 1980s. Then, in the 1990s, Starbucks went international and became one of the world's most famous brands.
Starbucks is famous for having good coffee and a cozy place to hang out. They also care about doing good things, like helping coffee farmers and protecting the environment.
Some folks think Starbucks charges too much for their stuff and hurts local businesses. There are also claims that Starbucks doesn't treat its workers fairly. Even with these complaints, Starbucks is still super popular and successful. It's a big deal in the coffee business, and they're serious about being socially responsible.
Is Howard Schultz Leaving Starbucks Board - FAQs
Howard Schultz is leaving the Starbucks board as part of a planned transition. He has already stepped down from his role as CEO.
Schultz played a significant role in transforming Starbucks into a global coffee giant during his tenure as CEO, emphasizing customer experience and expansion.
Wei Zhang, a former senior advisor to Alibaba Group and president of Alibaba Pictures Group, will be taking Howard Schultz's seat on the Starbucks board.
Starbucks recently reported record revenue and strong same-store sales growth in some markets, despite challenges like the COVID-19 pandemic.
Schultz faced issues related to labor unions and allegations of labor law violations during his recent tenure as interim CEO.