NEW YORK – Starbucks Corp.’s Howard Schultz is stepping down as executive chairman of the coffee company he helped transform into a global brand, and said public service may be in his future.
Schultz, 64, said he is considering a range of options. He endorsed Democratic presidential nominee Hillary Clinton before the last presidential election and sometimes deflected questions about running for office. Speculation has swirled for years that he might run for president. While not addressing the question directly, he told The New York Times on Monday that he was considering public service and that “for some time now, I have been deeply concerned about our country – the growing division at home and our standing in the world.”
Schultz’s move comes after he ceded the day-to-day duties of CEO at Starbucks last year to focus on innovation and social effect projects as executive chairman. As of June 26, Starbucks said Schultz will take the title of chairman emeritus. The Seattle-based chain said he is writing a book about Starbucks’ social effect moves and its efforts to redefine the role of a public company.
“Starbucks changed the way millions of people drink coffee, this is true, but we also changed people’s lives in communities around the world for the better,” Schultz said in a letter to Starbucks employees.
Schultz was known for aligning himself and Starbucks with social issues like race and jobs for underprivileged youth – even when those efforts fell flat, like the “Race Together” campaign that encouraged workers to talk about race with customers.
More recently, as the company tried to restore its reputation after the arrests of two black men at a coffee shop in Philadelphia, Schultz said he didn’t want people to feel “less than” if they were refused bathroom access.
Last week, the company closed its U.S. stores for several hours for bias awareness training, one of the measures it promised after the men were arrested as they waited for an associate but hadn’t bought anything.
Schultz, who had returned as the company’s CEO in 2008, was credited with turning around Starbucks’ fortunes. He oversaw the expansion of the chain’s food and beverage menu and the growth of its popular loyalty program and mobile app.
In his letter, Schultz also credited the company with “balancing profitability and social conscience, compassion and rigor, and love and responsibility.”
Starbucks said Myron E. “Mike” Ullman would be the new chairman of the board upon Schultz’s retirement. Shares in Starbucks dropped 1 percent to $56.50 in extended trading after the announcement.