Longtime Starbucks CEO Howard Schultz is returning to lead the company on an interim basis after the coffee giant’s chief executive announced his retirement.
Starbucks made the announcement Wednesday ahead of its annual meeting.
Kevin Johnson said he will retire next month after five years as CEO and 13 at Starbucks. Johnson, a former executive at Microsoft and Juniper Networks, succeeded Schultz as CEO in 2017.
Johnson, 61, said he told the company’s board last year that he was considering retirement. His most obvious successor had been Roz Brewer, the company’s chief operating officer, but she left the company in February to become the top executive at Walgreens.
Starbucks plans to name a permanent CEO by the end of the year. Schultz will be paid $1 per year while he is the CEO of the company. Schultz, 68, is also returning to the Starbucks board of directors.
Investors reacted positively to the news, as the Seattle company’s stock soared 5% in premarket trade. Starbucks’ stock has dropped over 30% this year as the firm grapples with rising labor and commodity costs as well as poor sales in China.
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