Howard Schultz
| Howard Schultz | |
|---|---|
 Howard Schultz.jpg | |
| Born | 1953-07-19 Brooklyn, New York |
| 🏳️ Nationality | USA |
| 🏫 Education | Bachelor of Science degree in Communications from Northern Michigan University |
| 💼 Occupation | Businessman in Seattle, Washington |
| 📆 Years active | 1986–2023 |
| 🏢 Organisation | Starbucks Coffee Company |
| Known for | Starbucks visionary |
| 🏡 Home town | New York |
| 💵 Salary | $1 from March 2022 to March 2023 |
| 💰 Net worth | $3.7 billion |
| Title | ex-CEO |
| Term | 1986–2023 |
| 🏛️ Political party | Democratic (before 2019) Independent (2019–present) |
| 👩 Spouse(s) | Sheri Kersch (m. 1982) |
| 👶 Children | 2 |
| 🌐 Website | http://howardschultz.com/ |
Howard Schultz (born July 19, 1953) is an American businessman and entrepreneur, best known for his leadership as the former chairman and chief executive officer (CEO) of Starbucks Coffee Company.[1] Schultz is credited with transforming Starbucks from a small, Seattle-based coffee bean retailer into a global coffeehouse chain, with over 34,000 stores worldwide as of 2024.[2]
Early Life and Education
Schultz was born and raised in Brooklyn, New York, where he lived in the Canarsie Bayview Houses, a public housing project. He graduated from Canarsie High School in 1971 and went on to pursue a Bachelor of Science degree in Communications from Northern Michigan University, completing his studies in 1975.[3]
Early Career
Schultz began his career at Xerox Corporation as a salesperson, working there from 1975 to 1979.[4] He then joined Hammarplast, a Swedish housewares company, where he managed U.S. operations. It was during this time that Schultz first encountered Starbucks Coffee Company, which was then a small Seattle-based retailer. Schultz visited the company in 1981, intrigued by the large number of coffee makers they were purchasing from Hammarplast. This meeting with Starbucks' founders—Jerry Baldwin, Zev Siegl, and Gordon Bowker—would mark the beginning of his long relationship with the company.[5]
In 1982, Schultz became the director of retail operations and marketing at Starbucks.[6] His transformative moment came during a 1983 trip to Milan, Italy, where he observed the espresso bar culture and envisioned bringing that experience to the United States. Schultz proposed that Starbucks expand beyond selling coffee beans to include brewed beverages, but the original owners were not convinced by his vision.[7]
Il Giornale and Acquisition of Starbucks
Undeterred, Schultz left Starbucks in 1985 to start his own coffee company, Il Giornale, raising $1.6 million from investors to open his first store. Il Giornale proved to be a success, and Schultz’s vision for an American coffeehouse culture gained traction.
In 1987, Schultz acquired Starbucks for $3.8 million, merging Il Giornale with the Starbucks brand and becoming CEO.[8] Under his leadership, Starbucks expanded aggressively, growing from 11 stores in 1987 to over 165 by 1992. Schultz led Starbucks through its initial public offering (IPO) on June 26, 1992, raising $25 million at $17 per share, with the stock closing at $21.50 on the first day of trading.[9]
Global Expansion
Throughout the 1990s and early 2000s, Starbucks grew rapidly under Schultz's leadership. The company opened its first international store in Tokyo, Japan, in 1996, marking the start of its global expansion. By 2000, Starbucks had more than 3,500 locations worldwide.[10] Schultz stepped down as CEO that year but remained active as chairman of the board.[11]
In 2008, Schultz returned as CEO[12] during the global financial crisis, tasked with revitalizing Starbucks, which had been struggling due to overexpansion and market saturation. He implemented cost-cutting measures, closed underperforming stores, and refocused the company on customer experience and innovation. By 2017, Starbucks operated over 28,000 stores globally.[13] Schultz stepped down again in April 2017, handing over the CEO role to Kevin Johnson, though he remained as executive chairman until June 2018.[14]
Other Ventures and Philanthropy
In addition to his leadership at Starbucks, Schultz co-founded Maveron LLC, a venture capital firm, in 1998.[15] Maveron has invested in successful consumer-based startups such as Zulily, Allbirds, and Nextdoor.
Schultz and his wife, Sheri, established the Schultz Family Foundation in 1996.[16] The foundation focuses on initiatives related to youth employment, veteran services, and community development.
Schultz has also authored several books, including “Pour Your Heart Into It” (1997), “Onwar” (2011), and “From the Ground Up” (2019). In 2019, he considered running as an independent candidate for the U.S. presidency but ultimately decided not to pursue the candidacy.[17]
Net Worth
As of September 2024, Schultz's net worth is estimated at $3.4 billion,[18] making him one of the wealthiest individuals in the United States. The majority of his fortune is tied to his significant ownership stake in Starbucks. His net worth has fluctuated over the years, largely influenced by Starbucks' stock performance, driven by global expansion and financial results.
Schultz has periodically sold shares of Starbucks stock, disclosing these transactions through filings with the U.S. Securities and Exchange Commission (SEC). Between February 2011 and November 2017, Schultz sold shares worth approximately $662 million,[19] using Rule 10b5-1 trading plans to ensure compliance with insider trading laws.
Controversies and Criticisms
Throughout his career, Schultz has faced various criticisms, particularly concerning labor relations at Starbucks.[20] The company has been accused of anti-union practices, including discouraging unionization efforts and allegedly retaliating against pro-union employees. In 2022, the National Labor Relations Board filed complaints against Starbucks, although Schultz defended the company, emphasizing that Starbucks offers competitive benefits and does not require a union.[21]
Schultz also faced backlash for the 2015 "Race Together" campaign, which aimed to promote conversations about race between baristas and customers. The campaign was criticized for being poorly executed and was discontinued shortly after its launch.[22]
Environmental critics have highlighted Starbucks' environmental impact, particularly its use of single-use cups and waste management practices. Although the company has made efforts to improve sustainability, critics argue that the progress has been insufficient.[23]
Legacy
Howard Schultz is widely regarded as one of the most influential figures in the coffee industry, credited with popularizing the coffeehouse culture in the United States and expanding Starbucks into a global brand. His business acumen and leadership have shaped Starbucks' success, making it the world's largest coffeehouse chain.
However, Schultz’s legacy is not without controversy. His tenure has raised debates about labor practices, corporate responsibility, and the ethical complexities of leading a multinational corporation. Despite these challenges, Schultz's contributions to the business world and his impact on global coffee culture remain significant.
- ↑ Starbucks Corporation. Howard Schultz Biography.
- ↑ Starbucks Corporation. Investor Relations.
- ↑ Northern Michigan University. Notable Alumni
- ↑ Schultz, Howard. Pour Your Heart Into It, p. 22
- ↑ Ibid., p. 31
- ↑ Starbucks Corporation. Company Timeline.
- ↑ Howard. Pour Your Heart Into It, p. 46
- ↑ Starbucks Corporation. Company Timeline.
- ↑ The New York Times, "At Starbucks, Going Public and Going Global," June 1992
- ↑ Starbucks Annual Report 2000
- ↑ CNN Money, "Starbucks CEO Schultz Steps Down," June 2000
- ↑ CNN Money, "Howard Schultz Returns as Starbucks CEO," January 2008
- ↑ Starbucks Fiscal Year 2017 Annual Report
- ↑ CNBC, "Howard Schultz to Step Down as Starbucks Executive Chairman," June 2018
- ↑ Maveron.com
- ↑ SchultzFamilyFoundation.org, Our Story.
- ↑ The Washington Post, "Howard Schultz Won't Run for President," September 2019.
- ↑ Forbes. The World's Billionaires: Howard Schultz. September 2024.
- ↑ Insider Activity of Howard Schultz
- ↑ Scheiber, Noam. "Starbucks Seeks to Delay Union Election as Vote Nears." The New York Times, November 8, 2021
- ↑ Scheiber, Noam. "Labor board issues complaint against Starbucks in firing of 7 workers. " The New York Times, April 22, 2022
- ↑ Alison N. Novak, Julia C. Richmond. "E-Racing together: How starbucks reshaped and deflected racial conversations on social media. " Public Relations Review, Volume 45, Issue 3, September 2019
- ↑ Whalen, Jeanne. "Starbucks pledged to help save the planet. Environmental groups say it’s not doing enough." The Washington Post, January 22, 2020
