Former Starbucks CEO Howard Schultz has resumed his leadership role at a turbulent time in the face of ongoing cowardly challenges, supply-chain disruptions and growing socio-political instability, he wrote in an open letter to company employees, customers and others on Monday, his first day. The job. But Schultz wants to rise to the occasion – the company’s shares began in stark contrast to the buyback program, which was restored just a few weeks ago on March 16.
The buyback program benefits investors; When companies buy shares, they reduce the total number of shares outstanding, which means investors earn more for each share. But in his letter, Schultz pointed out flaws in the company’s buyback program, saying that closing it would “allow us to invest more profits in our people and in our stores – the only way to create long-term value for all stakeholders.”
Related: How Starbucks CEO Transformed a Small Coffee Bean Store into a Massively Successful Global Brand
In his new position, Schultz will have to fight a massive unification effort. Starbucks workers in Buffalo, New York, voted to form unions for the first time in December, and since then, more than 100 locations in more than 20 states have applied for union recognition. But Schultz wrote a letter last fall opposing the move, arguing that “as a partner at Starbucks we all need a partner representative to get what we have.”
After announcing Starbucks’ share buyback program, Vermont Senator Bernie Sanders denied his position on the coffee giant’s merger, saying “if Starbucks could spend $ 20 billion on stock buybacks and dividends and compensate its CEO $ 20 million.” It can afford a well-organized workforce that collectively bargains for better wages, better benefits, safer working conditions and more reliable schedules. ”
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In the coming weeks, as Starbucks tries to chart a new path forward, Schultz will travel with other company leaders to talk to the company’s stores and partners around the world.
As of 10:38 am EST, Starbucks Corporation was down 5.29%.
