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2022-03-16 19:44

Starbucks Corp. stock closed about 5.0% up after the company announced changes in its management as well as held a Starbucks Annual Meeting of Shareholders webcast today.

Kevin Johnson, president and chief executive officer of Starbucks Corporation, has expressed his desire to retire after a 13-year career with the firm, including the previous five years as CEO. Johnson will leave his present position on April 4, 2022, but will remain a Starbucks partner and special consultant to the business and Board of Directors until September.

New CEO to be named by fall 2022

Since 2021, the Starbucks Board of Directors has been working with Russell Reynolds Associates on ongoing CEO succession planning, and expects to name a new CEO by the fall. The Board has selected Howard Schultz as temporary chief executive officer, commencing April 4, 2022, to guarantee smooth leadership of the firm until a permanent replacement is named. Schultz will also return to the Board of Directors of the corporation.

Johnson, who has been a member of the Starbucks Board of Directors since 2009, was named president and chief operating officer in 2015. Johnson succeeded creator Schultz as president and chief executive officer in 2017.

Based on the firm's rich history, Johnson created the People Positive, Planet Positive, and Profit Positive framework, which aims to make the world a better place for Starbucks' partners, farmers, consumers, and communities. He designed and implemented the Growth at Scale agenda, which considerably improved shareholder value, and broadened the company's presence through the Global Coffee Alliance with Nestlé, which today operates in almost 80 markets.

Starbucks’ annual shareholders meeting

During today's webcast of the 2022 Starbucks Annual Meeting of Shareholders, Hobson and Johnson delivered an update to shareholders. The Board of Directors has organised a working group to manage the continuing CEO search, which has produced a solid list of candidates. The Board of Directors feels Schultz is uniquely equipped to serve as interim CEO until a new leader is appointed, as the company's creator and architect of its culture. In addition to overseeing the firm's daily operations, Schultz will take part in the executive search and assist in the on boarding of the future CEO.

Several members of the leadership team and green apron partners from across the world attended the broadcast. Starbucks' sustained investments and objectives for people and the earth, as well as the company's excitement for a future anchored in humanity, fuelled by innovation, and architected by green apron partners, were outlined by Johnson.

The stock that trades at a PE multiple of 23.58 is down roughly 25% for the year, including the price action on Wednesday.