On Wednesday, former Starbucks CEO Howard Schultz announced that he is stepping down from the coffee chain's board of directors as part of the company's planned transition.
While Schultz is officially retiring, Starbucks has chosen to give him the title of "lifelong Chairman Emeritus." He stepped down as CEO of the coffee chain company in March earlier this year as employees at stores across the United States moved to unionize.
Howard Schultz Steps Down From Board of Directors
In a statement, the former Starbucks CEO said he is looking forward to supporting the next generation of leaders to steer the coffee chain into the future as a customer, supporter, and advocate in his role as Chairman Emeritus.
The company also noted that Schultz was stepping down from the board of directors and will use his retirement to focus on his wife, Sheri, and a range of philanthropic and entrepreneurial investments.
Starbucks has chosen to elect Wei Zhang, who is the senior advisor to Alibaba Group and served as president of Alibaba Pictures Group, to its board starting on Oct. 1. He also currently serves on the board of Ralph Lauren Corporation and is known for being a former board member of Los Angeles Sports & Entertainment Commission, Amblin Partners, and the Jack Ma Foundation, as per CNN.
Zhang's appointment to Starbucks' board of directors could support the coffee chain's efforts in China, which is one of the biggest growth opportunities for the company. While sales in the Asian nation dropped during the COVID-19 pandemic's restrictions, quarterly revenue in the region spiked 51% year-over-year in the three months that ended on July 2.
In August, Starbucks' new CEO, Laxman Narasimhan, said they had so much opportunity, adding that the company is still in its early days in China, which he said is one of the largest consumer markets.
Schultz returned to Starbucks' leadership several times but first served as the company's CEO from 1987 to 2000. He returned to the position in 2008 until he handed over his spot to Kevin Johnson in 2017. He later stepped down as executive chairman and member of the board in 2018 but continued to be involved with the coffee chain.
Starbucks' Planned Transition
During his latest 11 months as CEO of Starbucks, Schultz crafted a strategy to modernize the coffee chain's cafes, improve relations with its baristas, and fuel further sales growth. Additionally, he spearheaded the launch of the company's Oleato, a line of olive oil-infused beverages, according to CNBC.
However, some of the former Starbucks CEO's actions created new enemies as he continued to take a more aggressive approach against baristas who were unionizing compared to Johnson. Starbucks Workers United and allies, including Sen. Bernie Sanders, made billionaire Schultz the face of the company's anti-union stance.
For a long time, Schultz has encouraged the company's partners to "dream big and then dream bigger." He was part of the efforts that transformed the coffee chain from a small company selling only whole beans to the renowned third place that it is today, having more than 36,000 stores in 86 markets worldwide, according to Starbucks Stories.
