Starbucks Looks To Fill CEO Howard Schultz's Shoes With An Outsider: WSJ

Coffee chain retailer Starbucks Corporation SBUX is looking past internal candidates to replace founder Howard Schultz, who is holding the chief executive officer role on an interim basis.

What Happened: Seattle, Washington-based Starbucks is considering just external candidates for the CEO role, as the coffee retailer looks to infuse fresh talent, fresh skills and fresh thinking that could help a turnaround, Schultz reportedly said in an interview, the Wall Street Journal reported.

Schultz reportedly said he doesn't plan to hold onto the top job permanently and plans to leave the company's executive team following the annual shareholder meeting in March 2022. He also suggested he has spoken to several potential CEO candidates and was left impressed with the diversity and quality of candidates who are interested in the job. A new CEO would be identified by the fall, he added.

Related Link: Why This Starbucks Analyst Says Stock Valuation Is At 'Historical Low'

Why It's Important: This is Schultz's third term at Starbucks, a company he helped transition into a formidable global player. He served as the CEO of the company for the first time between 1986 and 2000 and then again from 2008 to 2017. His most recent tenure at the company began in April, as he took over from Ken Johnson, to whom he had passed the baton in 2017.

Starbucks' stock has lost about 30% over the past year. Apart from macroeconomic uncertainty that has led to consumers tightening their purse strings, the company also had to contend with the impact of its decision to exit Russia.

To make matters worse, Starbucks employees are on a massive unionization drive in a bid to bargain for better pay, amenities, and working conditions.

Price Action: Starbucks stock closed Friday's session 0.47% lower at $79.04, according to Benzinga Pro data.