Starbucks’s Schultz Faces Poor Track Record for Boomerang CEOs
- Stock performance is 10% worse under repeat CEOs, study says
- ‘Back to basics’ may not work now for coffee chain: professor
Howard Schultz
Photographer: Alex Wroblewski/BloombergThis article is for subscribers only.
Starbucks Corp.’s move to bring back Howard Schultz for a third stint at the helm could prove treacherous for investors, based on the track record of so-called boomerang CEOs.
The coffee chain said Wednesday that Schultz will return as interim chief executive officer next month with Kevin Johnson retiring. Schultz was the architect of the coffee chain’s expansion in the ’80s and ’90s before stepping down as CEO in 2000. He returned to the role eight years later and led the company until Johnson took over in 2017.