Who could be in the running
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Starbucks CEO Kevin Johnson
Scott Mlyn | CNBC
StarbucksAfter the resignation of its CEO, the board at Starbucks is looking for a new chief executive. Kevin Johnson announced his plan to retire in April.
Howard Schultz was the CEO in his previous stint. However, he is expected to remain in office until Autumn. Mellody HOBSON, chairwoman, said that the board already had a selection of qualified candidates.
Johnson’s successor is not yet known. Whoever assumes the reins of the business will inherit it, which is in particular recovering from the Chinese pandemic. It also faces a growing effort to unify by the baristas.
Company is currently upgrading U.S. cafés in order to better serve customers and meet its ambitious sustainability goals.
Hobson stated that they are looking into all options and wanted the player. He also said that they will not leave any stone unturned. “Squawk Box”This Wednesday
These are the people who could be considered for next Starbucks CEO.
John Culver, Current COO
John Culver – Starbucks
Starbucks
Starbucks used the role of chief operating officer to train future CEOs. Johnson was the COO of Schultz’s company for two years, before becoming CEO. Roz Brewer was once considered to be the heir obvious and former COO. Johnson resigned in 2021 to take over as chief executive. Walgreens Boots AllianceIt is still in the middle or a turnaround.
John Culver has served as chief operating officerSince June, he has been the president of North America. Culver, a Starbucks veteran who has been working with Schultz over two decades, will probably have an important say on the appointment of the CEO. Culver serves as a director on several boards. Columbia SportswearAnd Kimberly-Clark.
Starbucks Board may want someone with more experience.
An ex-COO
Troy Alstead is Chief Operating Officer at Starbucks.
David Ryder | Reuters
Andrew Charles, Cowen analyst, suggested Troy Alstead (ex-CFO of Starbucks) as his choice for Johnson’s successor.
Charles shared this opinion in a Wednesday note to clients. “We believe former Starbucks COO (and also CFO) Troy Alstead should be included on the shortlist for the position,” Charles said.
After a long absence, and over two decades of service to the coffee chain, Alstead decided to resign from the company. Alstead told The Associated Press that he retired in 2016 after a long absence and more than two decades with the coffee chain. Puget Sound Business JournalHe was not returning to corporate life. Johnson was Johnson’s successor.
Rosalind “Roz” Brewer (Staff President and Chief Operations Officer at Starbucks) speaks to the annual meeting of shareholders in Seattle on March 20, 2019.
AFP | AFP | Getty Images
Starbucks could try to lure Brewer, who is currently in the top spot at the company’s headquarters, back into their fold. Starbucks is less stressful than turning around Walgreens’ failing business.
She was probably hired by the pharmacy chain to provide stability.
Howard Schultz, again
Howard Schultz was the former Chairman and CEO at Starbucks. He spoke during the New York City presentation of “From The Ground Up” on January 28, 2019.
Johannes Eisele | AFP | Getty Images
Starbucks confirms that Schultz will be acting as interim CEO from the Fall.
Hobson announced Wednesday, “He won’t stay for three-years.” We get him up until the fall. I’m confident.”
Not everyone is convinced.
Peter Saleh, BTIG analyst wrote to clients in a reaction to the news that “While the company is currently searching for a permanent chief executive officer and anticipates to do so by the fall”,
Schultz stated in his own statement, that he didn’t think he would return to the coffee chain after helping it become a worldwide brand.
He stated, “When something is dear to you, it’s a strong sense of responsibility that you can help when asked.” Although I didn’t plan on returning to Starbucks, it is something I am certain of. The company needs to transform again in order to reach a bright future that benefits all stakeholders.
Starbucks shares rose almost 7% during morning trading as investors rejoiced Schultz’s return.
Board member
Mary Dillon CEO Ulta Beauty
CNBC
Before they became chief operating officer, Johnson and Brewer served on the Starbucks board. Although it is rare that a board chooses one of its members, it is possible. VisaDuPont General MotorsThey have each been selected from their respective directors previously.
A number of experienced business leaders have been involved in leading Starbucks companies. Mary Dillon, the former CEO of Starbucks, has retired. UltaThis summer, had decades of experience and even a stint as a spokesman for the United States. McDonald’sChief marketing officer. Domino’s PizzaRitch Allison is the CEO of Starbucks. He has served on its board since 2019. However, he told CNBC he was ready to decamp to his native North Carolina — a far cry from rainy Seattle, where Starbucks is headquartered.
Appointments of director-to-CEO tend to be quick, but most often after the CEO is fired or resigns. According to a Stanford University paperTwo-thirds (or more) of these elections are triggered by a sudden resignation. Starbucks’ board wouldn’t likely need six additional months to appoint a director.
Hobson is a member of Starbucks’ board since 1997 and has also served one year as the chair. Ariel Investments also has her as the co-CEO. However, her inexperience with leading consumer-oriented companies makes her an unqualified candidate.
The new blood
Hobson stated that the company was looking at all options, even external candidates to assume the reins.
A new perspective and innovative ideas could be brought to the company by an outsider. Johnson, the former CEO of Juniper Networks, used his expertise in technology to help bring Starbucks into the digital age. He modernized everything at the restaurant, including the innovation process.
Given Mr. Johnson’s tech background prior to joining our company, [Starbucks] is likely to conduct a broad search,” BMO Capital Markets analyst Andrew Strelzik wrote in a note. We prefer an incoming CEO who has strong experience in the consumer sector.
Starbucks could benefit from tapping an outsider as it pushes to unionize its American baristas. To date, roughly 140 Starbucks stores in 26 statesAccording to Starbucks Workers United, they have asked the National Labor Relations Board for permission to unionize. Sixteen locations have already voted in support of unionization.
The company has denied being accused by union organizers of union busting. The NLRB filed a complaintStarbucks has retaliated against two Phoenix workers who sought to unite their shop location after receiving accusations.
Cowen’s Charles stated that “Unionization publicity might be a factor driving the company to seek externally for corporate culture founded upon benevolence of Mr. Schultz.”
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