Starbucks CEO Kevin Johnson is retiring after only five years on the job. The news comes after reports that the top Starbucks top-dawg had received a massive pay raise last year, from $14.6 million to $20.4 million. Billionaire Howard Schultz will return to the company as interim CEO, having previously served as the coffee giant’s head honcho from 1986 to 2000.
“A year ago, I signaled to the Board that as the global pandemic neared an end, I would be considering retirement from Starbucks. I feel this is a natural bookend to my 13 years with the company,” Johnson said in a statement.
Johnson, who is worth nearly $90 million, can afford to retire, but couldn’t afford a misstep as the company confronts a push for unionization among its baristas in the United States.
His replacement, Shultz, started at the coffee house in 1982. He later left and opened Il Giornale, a specialty coffee shop, that merged with Starbucks some years later. Shultz helped shape coffee’s role within society and accelerated growth at the coffee giant. Today, Starbucks is the largest coffee chain globally and the company is worth north of $100 billion.
Shultz’s work with the coffee conglomerate helped him amass a stunning $3.9 billion fortune but revealed that he will take a symbolic salary of $1 with his return to the company.
"When you love something, you have a deep sense of responsibility to help when called," Schultz said
Johnson joined the coffee house’s board in 2009 and ascended to the role of president and chief operating officer in 2015. He took over as CEO in 2017, replacing Schultz. He will stay on as a special consultant to the company and its board through September.
Johnson praised the company in a video message, saying "Starbucks has been a gift in my life," adding that he is "filled with gratitude and optimism for the future."
"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.
Source: Wall Street Journal, The Guardian