8-KLeadership ChangesRegulation FDExhibits & Filings

STARBUCKS CORP 8-K Report, Executive Changes (Dec 1, 2016)

Filed December 1, 2016For Securities:SBUX

Summary

Starbucks Corporation (SBUX) announced a significant leadership transition in an 8-K filing dated December 1, 2016. Effective April 3, 2017, Howard Schultz, the long-time CEO, will step down from his CEO role to become Executive Chairman. Kevin R. Johnson, currently President and Chief Operating Officer, will assume the position of President and Chief Executive Officer. This transition signals a strategic shift, with Mr. Schultz focusing on key growth initiatives such as the development of Starbucks Reserve® Roasteries, expansion of the Reserve® retail store format, and social impact programs. Mr. Johnson, with his extensive background at Microsoft and Juniper Networks, is positioned to lead the day-to-day operations and strategic execution of the company. Investors should note that Mr. Johnson's compensation details for the CEO role have not yet been determined at the time of this filing.

Key Highlights

  • 1Howard Schultz transitions from CEO to Executive Chairman, effective April 3, 2017.
  • 2Kevin R. Johnson appointed as the new President and Chief Executive Officer, effective April 3, 2017.
  • 3Schultz will focus on innovation, Starbucks Reserve® Roasteries, Reserve® retail store expansion, and social impact initiatives in his new role.
  • 4Johnson, previously President and COO, brings extensive experience from Microsoft and Juniper Networks.
  • 5Johnson's compensation as CEO has not yet been finalized.
  • 6The company held a conference call on December 1, 2016, to discuss this leadership change, hosted by Schultz and Johnson.

Frequently Asked Questions

The primary change is the CEO succession plan, with Howard Schultz transitioning from CEO to Executive Chairman and Kevin R. Johnson being appointed as the new CEO, both effective April 3, 2017.

As Executive Chairman, Mr. Schultz will concentrate on strategic growth areas including innovation, the development of Starbucks Reserve® Roasteries, expansion of the Starbucks Reserve® retail store format, and the company's social impact initiatives. He will also continue to serve as Chairman of the Board.

Kevin R. Johnson, 56, has been Starbucks' President and COO since March 2015. He has a strong background in the technology sector, having served as CEO of Juniper Networks and holding senior executive positions at Microsoft. As CEO, he will lead the company's overall operations and strategic execution.

No, the filing states that Mr. Johnson's compensation in connection with his role as president and chief executive officer has not yet been determined.