Starbucks announced on Wednesday that former CEO Howard Schultz will return as interim CEO with the news that current CEO Kevin Johnson will retire. The company also announced that the search for a successor is underway and will be led by Starbucks’ board of directors.

Johnson, 61, had announced he was considering retirement earlier in the year. He served for five years as CEO and will transition from the CEO position on April 4. Johnson will remain as a special consultant to the company and board through September.

At that point, Schultz, 68, who has a net worth of $4.3 billion, will become interim CEO until Starbucks can find a replacement. He will receive only $1 of compensation in his third stint as CEO. Schultz describes his role as “volunteering his time" while Starbucks expects it will find a new CEO by the fall.

“Although I did not plan to return to Starbucks, I know the company must transform once again to meet a new and exciting future,” Schultz commented. “With the backdrop of COVID recovery and global unrest, it's critical we set the table for a courageous reimagining and reinvention of the future.”

On Tuesday, the company announced plans to eliminate single-use cups by 2025 to encourage reusable options as more companies are pressured to push for a more sustainable future.

Starbucks has also been navigating a unionization push throughout its many chain stores on top of the pandemic and economic toils caused by both COVID-19 and the Russian invasion of Ukraine. Starbucks announced that it would suspend operations in Russia, following other companies in the protest.

Starbucks has pledged to donate profits from its business in Russia to humanitarian efforts in Ukraine
Starbucks has pledged to donate profits from its business in Russia to humanitarian efforts in Ukraine AFP / Federico PARRA
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