Howard Schultz has returned as interim CEO of Starbucks, the US coffee shop giant, following the retirement of Kevin Johnson. For Schultz, that will be the third time he is taking the reins of the company. Schultz founded and ran Starbucks for three decades, building it from 11 stores and 100 employees to 28,000 stores worldwide.
But the succession playbook seems to be the most challenging part as no one, but him, he reasons, seems to have a clear roadmap on how to unlock and sustain value in Starbucks. The market is not happy, for the return, as Starbucks is trading off by 4% today (possibly because he has killed the stock buyback).
Some founders and their companies are entwined. Lots of materials for business schools on succession and how to execute it in this age.
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Just three weeks ago, Starbucks (SBUX) announced that it had big plans to lavish its shareholders with new rewards. The company said it was reinstating its stock buyback program, touting a $20 billion commitment over the next three years.
“While our growth this year will not be linear, we are confident our approach supports a profit positive company today and over the long-term, creating value for all stakeholders, our partners, our customers and our shareholders,” Chief Financial Officer Rachel Ruggeri said in a presentation to investors.But that plan was thrown out of the window when Howard Schultz assumed the role of interim CEO on Monday, taking the reins of the company for a third time.
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