Howard Schultz

Howard D. Schultz
Howard D. Schultz
Born	July 19, 1953 (age 73); Brooklyn, New York, U.S.
Occupation(s)	Entrepreneur, writer
Years active	1976–present
Known for	Chairman and CEO of Starbucks, owner of Seattle SuperSonics

Howard D. Schultz (born July 19, 1953) is a prominent American entrepreneur and writer, recognized for his tenure as chairman and CEO of Starbucks during three periods: 1986–2000, 2008–2017, and as interim CEO from 2022 to 2023. Additionally, he was the owner of the Seattle SuperSonics basketball franchise between 2001 and 2006.

Schultz joined Starbucks in 1982 before founding Il Giornale, a specialty coffee retailer that later merged with Starbucks in the late 1980s. His leadership propelled Starbucks into a worldwide coffeehouse phenomenon, shaping coffee culture both domestically in Seattle and across international markets. In 1992, he led Starbucks to go public with an initial valuation of $271 million, fueling rapid store growth amid fierce market competition. Schultz resigned as CEO in 2000, with Orin C. Smith succeeding him. Due to his transformative impact on Starbucks, he has been dubbed the “Ray Kroc of his generation.”

Amid the 2008 financial crisis, Schultz returned as CEO and directed major restructuring efforts including executive layoffs and store shutdowns. He championed acquisitions targeting beverage markets in the U.S. and China, introduced a national loyalty program, and established fair trade policies. His strategic push into China successfully blended coffee culture with traditional tea-drinking customs. In April 2017, Schultz handed over the CEO role to Kevin Johnson, followed by Myron Ullman succeeding him as chairman in June 2018.

As an author of four business books, Schultz identifies as socially liberal and fiscally moderate within a neoliberal framework. He contemplated independent presidential campaigns in 2012, 2016, and 2020 but ultimately did not run. Forbes listed him as the 209th wealthiest American with a net worth of $4.3 billion as of October 2020. He also established the Schultz Family Foundation focusing on veteran support and youth unemployment alleviation.

On March 16, 2022, Starbucks announced Schultz’s return as interim CEO following Kevin Johnson’s retirement; he served until April 2023 when Laxman Narasimhan assumed the CEO position. Schultz exited this interim role prematurely in March 2023.

Early life and education

Howard D. Schultz was born on July 19, 1953, in Brooklyn, New York, to Ashkenazi Jewish parents Fred and Elaine Schultz. His father worked as a truck driver while his mother was employed as a receptionist. Raised in the Canarsie public housing projects, Schultz describes his upbringing as impoverished, although some peers recall it being closer to middle class.

During his youth, Schultz was involved with the Boys Club of New York and continues to engage with its alumni community. He graduated from Canarsie High School in 1971 before enrolling at Northern Michigan University (NMU), where he studied from 1971 until 1975. At NMU, he joined the Tau Kappa Epsilon fraternity and earned a Bachelor of Arts degree in communications. Initially pursuing football, an injury led him to abandon the sport despite having an athletic scholarship opportunity.

Early career

Schultz began his professional journey in 1976 as a sales representative for Xerox based in New York. By 1979, he was recruited by French private equity firm PAI Partners to lead the U.S. division of Swedish kitchenware company Hammarplast. While managing Hammarplast’s American operations for their coffee machine products, Schultz visited Starbucks in Seattle in 1981 to oversee orders for plastic cone filters.

Starbucks

At the age of 29 in 1982, Schultz joined Starbucks as the director of retail operations and marketing. During a 1983 visit to Milan, he encountered Italian coffee culture, which inspired him to suggest incorporating espresso drinks into Starbucks' menu. Although a pilot program showed promise, the original founders—Jerry Baldwin and Gordon Bowker—opted against expanding due to financial concerns and unfamiliarity with the market. Schultz departed in 1985 to start his own enterprise.

He secured $400,000 to establish Il Giornale, modeled after Milan’s espresso bars, with Starbucks contributing $150,000 and additional investors providing $100,000. In 1987, Schultz purchased Starbucks’ retail division for $3.8 million, rebranding Il Giornale as Starbucks and initiating nationwide growth. He chose not to franchise, keeping all U.S. stores under corporate control, thereby positioning Starbucks as a community gathering place and a leader in the second wave of American coffee culture.

Starbucks went public on June 26, 1992, raising $271 million that funded further store openings. Schultz stepped down as CEO in 2000 to assume the role of chief global strategist, focusing on international expansion including opening the first Chinese store in 1999 and planning accelerated growth throughout the 2000s.

Between 2006 and 2008, Starbucks faced stiff competition from McDonald's and Dunkin', leading to a decline in U.S. market share and stock price despite revenue increases largely driven by new store launches.

Returning as CEO on January 7, 2008, amid the financial crisis, Schultz implemented significant restructuring: he dismissed executives, closed underperforming stores, and retrained staff to enhance product quality. He also reinforced ethical sourcing initiatives by doubling fair trade coffee purchases to approximately 40 million pounds annually. Additionally, Schultz appointed Starbucks’ inaugural chief technology officer. His compensation during this period totaled $9.7 million, including stock options.

Outside of Starbucks, Schultz made early investments in Jamba Juice (2011) and served on the board of payment company Square until 2014. In that year, he introduced the Starbucks College Achievement Plan with Arizona State University to provide free tuition for employees working more than 20 hours per week.

Schultz resigned again as CEO in December 2016 to become executive chairman. From 2008 through 2017, he oversaw an increase of nearly $100 billion in Starbucks’ market capitalization. Under his guidance from the 1980s onward, Starbucks expanded from just 11 stores in Seattle to over 28,000 locations across 77 countries.

On June 4, 2018, Schultz declared his retirement from day-to-day management after a 37-year tenure but remained involved during leadership transitions. Kevin Johnson succeeded him as CEO while Myron Ullman took over as chairman that same month. Schultz returned as interim CEO following Johnson’s departure in March 2022.

On March 20, 2023, two weeks before transferring leadership to incoming CEO Laxman Narasimhan, Schultz stepped down from his interim CEO position. He appeared before the United States Senate Committee on Health, Education, Labor and Pensions on March 29, 2023.

Seattle SuperSonics and Seattle Storm

In January 2001, Schultz spearheaded a consortium of ten investors to acquire the NBA's Seattle SuperSonics and WNBA's Seattle Storm from the Ackerley Group for $200 million. Throughout his tenure, Schultz encountered criticism for prioritizing business operations over the sports aspect of the franchise. He notably had disagreements with player Gary Payton concerning professional behavior. By February 2006, Schultz indicated that the SuperSonics needed $200 million either to refurbish KeyArena or to construct a new facility; without securing public funding, he contemplated selling or relocating the franchise.

On July 18, 2006, Schultz transferred ownership of both teams to Clay Bennett’s Oklahoma City group for $350 million. Bennett committed to a one-year "good-faith best effort" attempt to retain the teams in Seattle, though skepticism surrounded this promise. Subsequently, on January 8, 2008, Bennett sold the Storm to Force 10 Hoops, LLC, a Seattle-based consortium of four women, ensuring the Storm remained in the city.

In April 2008, Schultz filed a lawsuit against Bennett seeking to undo the sale, citing fraud and misrepresentation; however, he withdrew the suit in August. On July 2, 2008, an agreement was reached with the new ownership whereby the SuperSonics relocated to Oklahoma City and were rebranded as the Thunder for the 2008–09 NBA season. This transaction severely tarnished Schultz’s standing within Seattle; a local survey identified him as primarily responsible for the team’s departure. In 2019, Schultz publicly acknowledged full accountability, labeling the sale among his greatest professional regrets and expressing remorse for not awaiting a local buyer.

Author

Schultz has published four books, three of which intertwine business memoir elements with corporate social responsibility topics. In 2019, he introduced an online course on business leadership through MasterClass. His literary approach is influenced by organizational expert Warren Bennis.

His debut book, Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time (1997), was succeeded by Onward: How Starbucks Fought for Its Life Without Losing Its Soul (2011), co-authored with Joanne Gordon. While some reviewers considered Onward self-congratulatory or excessively detailed, others commended its honest portrayal of Starbucks’ recovery efforts. Proceeds from this work were donated to the Starbucks Foundation.

In 2014, Schultz released For Love of Country: What Our Veterans Can Teach Us About Citizenship, Heroism, and Sacrifice, co-written with Rajiv Chandrasekaran. The book garnered favorable critiques from major publications and was featured on The New York Times 2014 Winter Reading List.

His fourth publication, From the Ground Up: A Journey to Reimagine the Promise of America (2019), was widely interpreted as a potential memoir in anticipation of a presidential campaign ahead of the 2020 election. It appeared on bestseller lists including those of The Wall Street Journal and The New York Times. Nonetheless, it received mixed critical responses and low Amazon ratings partly due to political opposition. Critics described it as lacking the vigor expected from Schultz’s business achievements. A promotional event at Harvard University sparked protests from students.

Political perspectives

Howard Schultz identifies as a neoliberal, centrist, and maintains an independent political stance, with views largely consistent with the Democratic Party agenda. His policy preferences include advocating for free trade, maintaining balanced budgets, implementing thorough tax reforms, supporting gun control measures, and endorsing same-sex marriage.

Throughout the 2008 presidential election cycle, Schultz organized a fundraiser for John Edwards and subsequently contributed to the campaigns of Hillary Clinton and Barack Obama. He publicly backed Barack Obama in both the 2008 and 2012 elections, making two donations to Obama's 2008 campaign. Additionally, Schultz supported Democratic nominee Hillary Clinton in the 2016 presidential race. Since 2012, remarks he made have sparked conjecture about a possible presidential run, although he ultimately chose not to enter the race.

Labor unions

From the late 1980s onward, Schultz has been involved in actions opposing unionization efforts at Starbucks. When unions emerged within the company, they frequently dissolved following corporate resistance.

In 2009, Schultz joined forces with CEOs from Costco and Whole Foods to lobby against union-supportive elements of the proposed Employee Free Choice Act, legislation intended to facilitate union formation through "card check." This bill did not pass into law.

Within his 2012 memoir Pour Your Heart Into It, Schultz conveyed his conviction that employees would have confidence in his leadership and therefore would not require union representation.

As union organizing increased in 2022, Schultz resumed his role as interim CEO and characterized Starbucks as being "under assault from unionization" driven by "outside forces," expressing opposition to intermediaries between management and workers. During this period, Starbucks terminated employees involved in union activities, including one dismissal shortly after Schultz held a town hall meeting. These terminations prompted formal complaints filed by the National Labor Relations Board (NLRB), accusing Starbucks of retaliatory conduct.

On March 29, 2023, Schultz appeared before the Senate Committee on Health, Education, Labor and Pensions to deny that Starbucks engaged in anti-union practices and reiterated support for labor laws. When Senator Bernie Sanders questioned him regarding compliance with an NLRB judge’s decision that found Starbucks guilty of “egregious and widespread misconduct” in Buffalo, New York—which included orders to reinstate dismissed workers and inform employees of their rights—Schultz declined to adhere to the ruling, asserting that the company had not violated legal statutes.

Climate change

During his tenure as Starbucks CEO, Schultz has emphasized how climate change threatens coffee cultivation. He opposed the United States' exit from the Paris Agreement and advocates for funding a green economy by imposing taxes on oil and gas industries while investing in wind power. Nonetheless, he criticized the 2018 Green New Deal as being economically impractical.

Bipartisanship

In December 2012, Schultz launched a Starbucks initiative promoting bipartisanship amid political deadlock in Washington, encouraging employees to inscribe "come together" on coffee cups. While exploring a presidential bid in 2020, he stressed the importance of governing solely with bipartisan backing, including making appointments to the U.S. Supreme Court that reflect this approach.

Fiscal discipline

Schultz maintains a strong opposition to incurring debt and is known as a deficit hawk in political circles. When exploring a presidential run in 2019, he characterized himself as socially progressive yet fiscally cautious with moderate economic policies. In June 2018, he identified the national debt as the foremost internal threat and stressed the importance of reforming entitlement programs. He further labeled the country’s yearly sovereign interest expenses, which surpassed $400 billion in 2020, as "unsustainable." Nevertheless, Jason Furman, who served as chief economist under President Barack Obama, challenged Schultz’s stringent views on sovereign debt, arguing that "America is not a company" and noting that many prosperous corporations operate with greater debt levels than the U.S. government.

Trade

Amid the 2018 trade conflict between the U.S. and China, Schultz criticized both the rationale behind and the handling of the dispute, advocating for lower tariffs and import-export levies. In 2008, he doubled Starbucks’ purchases of fair trade coffee; by 2009, fair trade coffee constituted 65% of its supply, nearly achieving full conversion by 2015. Starbucks entered into an agreement with Ethiopia’s government in 2007 to enhance compensation for coffee farmers. Schultz also pledged that all 747 Starbucks locations in the UK would be certified fair trade by the end of that year, positioning Starbucks as the largest purchaser of fair trade coffee globally.

Business

Schultz champions free market principles and in 2020 criticized what he described as American society’s "vilification" of business and capitalism. During the COVID-19 crisis, he called for fiscal stimulus measures to assist small enterprises, deeming the CARES Act and its Paycheck Protection Program inadequate and temporary solutions. On April 21, he proposed a federally guaranteed "Marshall Plan" consisting of loans designed to sustain small businesses throughout the pandemic.

Tax reform

In January 2019, Schultz voiced support for comprehensive changes to the tax system. He opposed Alexandria Ocasio-Cortez’s plan to increase the top marginal tax rate on incomes exceeding $10 million to 70%, describing it as "punitive" and inconsistent with the American Dream. Schultz also criticized Donald Trump’s 2017 Tax Cuts and Jobs Act, which reduced taxes for wealthy individuals and corporations. During a CNN town hall event, he recommended raising the highest marginal tax rate from 37% to 39%. His preference lies in tax reductions aimed at middle-market companies and small businesses rather than large corporations.

Same-sex marriage

In 2013, Starbucks officially endorsed same-sex marriage two years before it gained federal legalization in the U.S. Schultz responded to conservative shareholders who opposed this stance by instructing them to "Sell your shares," an uncommon public CEO rebuttal widely reported in the media. This decision established Starbucks as an early corporate supporter of LGBTQ+ rights, strengthening its brand image and engagement with stakeholders.

Healthcare

Under Schultz’s guidance, Starbucks became the first American company to offer healthcare benefits to part-time workers, including baristas. He opposes Medicare for All and has criticized Republican attempts to repeal the Affordable Care Act as lacking cooperation. Schultz’s approach to healthcare emphasizes private sector solutions over government-driven reforms.

Gun control

Schultz advocates for gun regulation and the implementation of universal background screenings. In July 2013, patrons of Starbucks carried firearms into stores to express support for the Second Amendment. By September of that year, Schultz, serving as CEO, requested that customers refrain from bringing guns into Starbucks locations.

Immigration

Schultz supports establishing a legal pathway to citizenship for undocumented immigrants who were brought to the United States as children. Although he favors enhanced border security measures, he opposed President Trump's proposal to build a border wall. In 2017, Schultz directed Starbucks to ignore an executive order that restricted Syrian refugees and committed to expediting employment opportunities for immigrants and refugees connected to the U.S. military. This stance prompted calls for a boycott from supporters of President Trump.

Veterans' affairs

In 2015, Schultz launched Onward Veterans, a private organization dedicated to assisting military veterans who served after 9/11 in their transition back to civilian life. The previous year, he co-wrote For Love of Country, a book exploring the experiences of veterans from Iraq and Afghanistan and their reintegration challenges. Schultz also increased tuition assistance for families of veterans as part of promoting the publication.

During a 2019 interview, Schultz claimed he had engaged more extensively with military issues recently than other presidential contenders, which drew criticism from veterans-turned-politicians Pete Buttigieg and Tulsi Gabbard; Schultz subsequently issued an apology. His tentative presidential campaign in 2020 received backing from retired U.S. Army General Peter W. Chiarelli.

Washington state politics

In 2012, Schultz supported Washington state's Referendum 74 through Starbucks, which legalized same-sex marriage. He opposed Seattle's $15 minimum wage law; nonetheless, the measure passed despite his objections.

Between 2005 and 2019, Schultz participated in only 11 out of 38 local elections. The Seattle Times characterized his voting record as a consistent "pattern of overlooking many local contests." While actively engaging in state-level political discussions, he frequently refrained from voting in critical local elections such as those for mayor and city council. Washington Governor Jay Inslee—who ran against Schultz in the 2020 election—criticized him for his limited involvement in state politics.

Congressman George Nethercutt suggested that Schultz’s political message might resonate more effectively with voters in Eastern Washington than those residing in the western part of the state.

Foreign policy

Schultz is described as a foreign policy liberal hawk, combining socially progressive domestic views with assertive, interventionist international policies. He supports neoliberal institutionalism and advocates for a U.S.-led unipolar global order aimed at fostering stability through multilateral cooperation.

United Kingdom: Amid the 2009 economic downturn, Schultz voiced concerns about rising unemployment and declining consumer confidence in the UK, characterizing the nation as caught in a "downward spiral." British Business Secretary Peter Mandelson criticized these comments, suggesting they mirrored Starbucks' own difficulties within the UK market. Subsequently, Starbucks issued an apology for Schultz’s remarks.

Syria: Schultz condemned the 2019 withdrawal of U.S. forces from Syria, arguing it undermined American alliances and created a power void in the Middle East. He advocated maintaining a limited U.S. military presence to preserve regional stability and influence.

Russia: He denounces Russian meddling in American politics and refers to Russia as an "adversary of the United States."

China: Schultz perceives China as "neither friend nor foe but a formidable competitor." His business interests with Starbucks may shape his favorable stance toward China-related policies. Hedge fund manager Bill Ackman remarked that Schultz’s potential presidency could serve as protective leverage for Starbucks against Chinese retaliatory actions. Schultz has commended China’s Belt and Road Initiative for its role in improving infrastructure and attracting foreign direct investment.

Israel: From October 2023 through May 2024, Schultz took part in a confidential coalition of prominent U.S. business leaders working to influence public opinion positively toward Israel following Hamas's attack. The group included notable figures such as Michael Dell, Daniel Lubetzky, Daniel Loeb, Bill Ackman, Len Blavatnik, Joseph Sitt, Joshua Kushner, along with non-American members like Cypriot-Israeli billionaire Yakir Gabay. They engaged with Israeli officials including former Prime Minister Naftali Bennett and Ambassador Michael Herzog. In April 2024, members held a virtual meeting with New York City Mayor Eric Adams aiming to encourage Columbia University to permit police intervention against protests opposing Israel’s Gaza operations. The group also discussed political contributions to Adams; however, according to Schultz’s spokesperson, he neither provided financial support nor contributed beyond attending briefings led by Israeli representatives.

2012 presidential election

Early in the 2012 United States presidential election cycle, Schultz was considered a possible Democratic contender. This speculation intensified after he encouraged Starbucks staff in Washington to inscribe "come together" on their cups as a message of bipartisan unity. Nevertheless, Schultz promptly refuted these claims, confirming he had no plans to run for office. Throughout this period, he remained vocal about his dissatisfaction with the political environment and expressed doubts about U.S. leadership, though some media outlets continued to speculate about a future political bid.

2016 presidential election

By mid-2015, rumors surfaced suggesting Schultz might enter the 2016 United States presidential election. According to The New York Times, close associates urged him to participate in the Democratic primary. Media discussions centered on whether he would declare his candidacy, with Fortune highlighting him as a potential formidable alternative to Hillary Clinton. Schultz dismissed these rumors in an op-ed, affirming his commitment to focusing on Starbucks. Several commentators drew parallels between him and Donald Trump because of his entrepreneurial background and wealth, labeling him the "liberal Donald Trump."

2020 presidential election

Following his departure from Starbucks in 2018, Schultz was again speculated to be a candidate for the 2020 United States presidential election. Motivated by a grassroots initiative called Ready for Schultz, he engaged political strategists Steve Schmidt and Bill Burton to evaluate his prospects. On January 27, 2019, during an appearance on 60 Minutes, Schultz revealed he was considering an independent centrist campaign and indicated he might invest between $300 million and $500 million into it.

His potential independent run drew criticism from Democrats concerned it could fracture the anti-Trump electorate and inadvertently aid President Trump’s re-election. Political analyst Larry Sabato shared this apprehension; however, a CNN analysis noted that Schultz’s emphasis on deficit reduction might appeal not only to liberals and independents but also moderate Republicans. In response, Schultz stressed his strong motivation to see Trump removed from office.

Schultz’s inaugural town hall event in Seattle elicited mixed feedback—his speech was praised by some but met with protests by others. As a significant Starbucks shareholder, questions arose regarding how he would handle conflicts of interest if elected; Schultz suggested options like placing assets in a blind trust and pledged full transparency by releasing all tax documents.

In February 2019, Schultz committed to withdrawing from the race should Democrats nominate a centrist candidate. On September 6, he officially announced he would not run, explaining that pursuing office was not the most effective way for him to serve the nation. This decision was influenced by Joe Biden’s emergence as the likely Democratic nominee with similar political views. Although initially withholding endorsement, Schultz later expressed respect for Biden and formally endorsed him on September 14, 2020, urging voters to support Biden “for the future of our republic.”

Personal life

Schultz wed Sheri Kersch in 1982; they have two children together. Their son Jordan works as an NFL insider and sports analyst at Bleacher Report. The family currently lives in Seattle’s Madison Park area after previously residing near Madrona. An avid coffee enthusiast, Schultz reportedly consumes four to five cups daily.

Wealth

In October 2020, Forbes placed Schultz as the 209th wealthiest individual in the United States, estimating his net worth at $4.3 billion. Speculation about his possible political pursuits led to recommendations that he divest his Starbucks holdings to prevent conflicts of interest; although he has not agreed to sell, Schultz has explored the option of transferring his shares into a blind trust. Nevertheless, doubts persist regarding whether such measures can entirely remove conflicts, given the direct correlation between the company’s performance and shareholder value.

Schultz co-established the venture capital firm Maveron in 1998 alongside Dan Levitan. The firm concentrates on early-stage investments in consumer-focused startups, including companies like eBay, Shutterfly, and Zulily. By mid-2014, Maveron was overseeing assets totaling $1.3 billion. As of July 2022, Schultz’s net worth was approximated at $3.9 billion.

He is also the owner of 'PI,' a 77-meter luxury superyacht constructed by Feadship at a cost of $120 million.

Philanthropy

Howard and Sheri Schultz launched the Schultz Family Foundation in 1996, which supports initiatives such as Onward Youth—aimed at helping young individuals aged 16 to 24 who are neither employed nor enrolled in school—and Onward Veterans, which assists military veterans from post-9/11 service in their transition back to civilian life.

In response to the Hamas attacks on Israel on October 7, 2023, the Schultz Foundation released a statement on October 13 condemning all forms of violence and pledging additional aid for trauma relief and humanitarian assistance. Subsequently, on October 26, 2023, Starbucks issued a separate announcement clarifying that neither Schultz nor Starbucks had ever contributed profits to the Israeli government or military; this declaration did not mention the foundation.

Awards and honors

In 1998, Schultz was honored with the Israel 50th Anniversary Tribute Award for strengthening U.S.-Israel relations. The following year, AIDS Action recognized him with its National Leadership Award for his philanthropic contributions toward combating AIDS. Fortune magazine designated him as its "Businessperson of the Year" in 2011 for his economic and employment efforts and later acknowledged him as the most generous CEO in 2015 due to Starbucks’ comprehensive healthcare benefits, educational programs, and employee stock ownership plans.

Schultz served as the commencement speaker at Arizona State University in 2017 and was awarded an honorary Doctor of Humane Letters degree. That same year, he received the National Equal Justice Award from the NAACP Legal Defense and Educational Fund.

Books

Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time by Howard Schultz and Dori Jones Yang (1997)
Onward: How Starbucks Fought for Its Life without Losing Its Soul by Howard Schultz and Joanne Gordon (2011)
For Love of Country: What Our Veterans Can Teach Us About Citizenship, Heroism, and Sacrifice by Howard Schultz and Rajiv Chandrasekaran (2014)
From the Ground Up: A Journey to Reimagine the Promise of America by Howard Schultz and Joanne Gordon (2019)

External links