Schultz, who reimagined the Italian coffeehouse tradition in America
and redefined the role and responsibility of a publicly-held company,
announces his departure as executive chairman of Starbucks
Schultz, who will be honored as chairman emeritus, tells over 2
million past and present partners (employees), “We
did it together, by balancing profitability and social conscience”
Schultz’s stewardship of the Starbucks brand and business delivers
21,000% price appreciation for shareholders since its 1992 Initial
Public Offering
Myron E. Ullman appointed as next chair of Starbucks Board of
Directors; Mellody Hobson appointed vice chair
SEATTLE--(BUSINESS WIRE)--
Starbucks Corporation (NASDAQ: SBUX) today announced that Howard Schultz
is stepping down as executive chairman and member of the Board of
Directors and will be honored with the title of chairman emeritus
effective June 26, 2018.
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From the first Starbucks at Pike Place Market on June 4, 2018, photo of Howard Schultz who will bid farewell to the company on June 26, 2018 and will be honored as chairman emeritus. Schultz, who reimagined the Italian coffeehouse tradition in America and redefined the role and responsibility of a publicly-held company, announced his departure as executive chairman of Starbucks telling over two million past and present partners (employees), “We did it together, by balancing profitability and social conscience.”
During his four decades as ceo and chairman, Schultz grew Starbucks from
11 stores to more than 28,000 stores in 77 countries,
while demonstrating that a business can simultaneously deliver
best-in-class financial performance and share success with its people
and the communities it serves.
Under Schultz’s leadership, Starbucks has delivered a 21,000% gain in
the value of its stock price since its initial public offering in 1992.
The company’s growth was fueled 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.
“I set out to build a company that my father, a blue-collar worker and
World War II veteran, never had a chance to work for,” Schultz wrote in
a letter addressed today to past and present Starbucks partners.
“Together we’ve done that, and so much more, by balancing profitability
and social conscience, compassion and rigor, and love and
responsibility.”
Schultz’s journey began in 1981, when he walked into the first Starbucks
store, located in Seattle’s iconic Pike Place Market. The following
year, he moved with his wife, Sheri, from New York to assume the role
of director of operations and marketing. Schultz’s passion for the
highest quality coffee heightened on a business trip to Italy, where he
was captivated by the sense of community, romance and theater found in
Italian coffee bars. In the years following his return to Seattle,
Schultz purchased Starbucks with the support of local investors and
dedicated his career to bringing his vision of a modern coffee house to
life in America and around the world.
Schultz elevated the concept of Starbucks as the third
place between home and work: a comfortable, welcoming
environment that provides uplifting experiences, community and human
connection.
Among his many accolades, Schultz has been named as one of The World's
Most Influential People by Time magazine as well as Business
Person of the Year by Fortune. Most recently, Schultz has
received the Robert F. Kennedy Ripple of Hope Award and has been
presented with the Atlantic Council’s Distinguished Business Leadership
award and the NAACP LDF (Legal Defense and Education Fund) National
Equal Justice award.
This year, Starbucks was named the fifth most admired company in the
world by Fortune, marking the 16th year in a row that the
company has appeared on the global list. Starbucks was also named one of
the World’s Most Ethical Companies by the Ethisphere Institute for the 12th consecutive
year and was ranked as one of 2018’s Most Innovative Companies by Fast
Company, most notably for its social-impact work.
On April 3, 2017, Schultz 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 – and the New York Roastery in late October.
Starbucks also announced today that its Board of Directors has
appointed Myron E. “Mike” Ullman as its new chair of the Board and
Mellody Hobson as vice chair of the Board effective upon Schultz’s
retirement. Starbucks world-class, values-based board is comprised of
accomplished leaders representing diversity and excellence in global
technology, retail, consumer experience and other relevant skill sets.
“There are no words to fully express our gratitude to Howard for the
extraordinary company he has built,” said ceo and member of the Board of
Directors Kevin Johnson. “He’s helped Starbucks earn the respect of
millions around the world by always being true to a higher calling, and
always being bold in creating a better future. He’s taught all of us
that it’s possible to be a very different kind of public company. That
must, and will, continue on my watch.”
In Schultz’s letter to partners, he thanked them for their collective
efforts to build a different kind of company. “Because of your
creativity, your hard work, and the love that you have poured into the
company, Starbucks today is widely embraced and respected. 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.”
He also expressed deep confidence in the team that will continue to lead
the company. “Kevin Johnson is a true servant leader, and he will lead
Starbucks as this great company enters its next journey. It’s our duty
as leaders to constantly reimagine Starbucks. I am honored to call Kevin
my friend and partner. And Starbucks is fortunate to have him. This
leadership team is extraordinarily capable. They, too, believe that
Starbucks has a responsibility to use our scale for good.”
Schultz is looking forward to spending more time with his family this
summer. He is also writing a book about Starbucks social impact work and
the efforts to redefine the role and responsibility of a public company
in an ever-changing society.
To the more than 330,000 partners who wear the green apron today, and
the millions before them, Schultz will forever represent Starbucks
mission to inspire and nurture the human spirit one person, one cup and
one neighborhood at a time.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. Today, with more than
28,000 stores around the globe, the company is the premier roaster and
retailer of specialty coffee in the world. Through our unwavering
commitment to excellence and our guiding principles, we bring the
unique Starbucks Experience to life for every customer through every
cup. To share in the experience, please visit us in our stores or online
at news.starbucks.com or www.starbucks.com.
Forward-Looking Statement
Certain statements contained herein are “forward-looking statements”
within the meaning of the applicable securities laws and regulations.
Generally, these statements can be identified by the use of words such
as “anticipate,” “expect,” “believe,” “could,” “estimate,” “feel,”
“forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,”
“will,” “would,” and similar expressions intended to identify
forward-looking statements, although not all forward-looking statements
contain these identifying words. These statements are based upon
information available to Starbucks as of the date hereof, and Starbucks
actual results or performance could different materially from those
stated or implied due to risks and uncertainties associated with its
business. These risks and uncertainties include, but are not limited to,
fluctuations in U.S. and international economies and currencies, our
ability to preserve, grow and leverage our brands, potential negative
effects of incidents involving food or beverage-borne illnesses,
tampering, adulteration, contamination or mislabeling, potential
negative effects of material breaches of our information technology
systems to the extent we experience a material breach, material failures
of our information technology systems, costs associated with, and the
successful execution of, the company’s initiatives and plans, the
acceptance of the company’s products by our customers, the impact of
competition, coffee, dairy and other raw materials prices and
availability, the effect of legal proceedings, and other risks detailed
in the company filings with the Securities and Exchange Commission,
including the “Risk Factors” section of the Starbucks Annual Report on
Form 10-K for the fiscal year ended October 1, 2017. The company assumes
no obligation to update any of these forward-looking statements.
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Source: Starbucks Corporation