Kevin Johnson (businessman)
Kevin R. Johnson | |
|---|---|
| Born | October 9, 1960 Gig Harbor, Washington, U.S. |
| Occupation(s) | Entrepreneur, software engineer, business executive |
| Years active | 1986–present |
| Known for | CEO of Starbucks (2017–2022), CEO of Juniper Networks (2008–2014), executive at Microsoft |
Kevin R. Johnson (born October 9, 1960) is an American entrepreneur and software engineer who held the position of president and chief executive officer (CEO) at Starbucks Coffee Company between 2017 and 2022. Prior to becoming CEO, he served as president and chief operating officer from 2015 until 2017, taking over from Howard Schultz. On March 16, 2022, Johnson declared his intention to step down as CEO, with Schultz stepping back in as interim CEO. Later that year, Johnson was appointed to the board of directors at Goldman Sachs.
Raised in Los Alamos, New Mexico after being born in Gig Harbor, Washington, Johnson completed his studies at New Mexico State University in 1981 before embarking on a career in software development. During the late 1980s, he worked as a systems engineer at IBM, followed by a move to Microsoft in 1992. At Microsoft, he was responsible for global sales, marketing, and services starting in 2003, working closely alongside CEO Steve Ballmer and founder Bill Gates. His initial engagement with Starbucks involved developing wireless internet solutions, which laid the foundation for his connection with Schultz. Johnson departed Microsoft amid the 2008 financial crisis to take on the role of CEO at Juniper Networks, serving from September 2008 through January 2014.
Johnson joined Starbucks’ board of directors in September 2009 and was soon promoted to chief operating officer before ascending to CEO. Throughout his leadership at Starbucks, he focused on refining the company’s core operations, advancing initiatives aimed at addressing racial inequality within the United States, and broadening the brand’s product offerings—particularly through innovations in espresso machine production and technology. Outside of Starbucks, Johnson contributed to national cybersecurity efforts as a member of the National Security Telecommunications Advisory Committee (NSTAC), serving under Presidents George W. Bush and Barack Obama.
Early life and education
Kevin R. Johnson was born on October 9, 1960, in Gig Harbor, Washington, and grew up in Los Alamos, New Mexico. His mother, Carol, worked as a pediatric nurse while his father Jim was employed as a theoretical physicist at the Los Alamos National Laboratory. After graduating from Los Alamos High School in 1978, Johnson earned a Bachelor of Arts degree in business administration from New Mexico State University (NMSU) in 1981. In recognition of his achievements, NMSU awarded him an honorary Doctor of Letters degree in 2017.
IBM
Johnson launched his professional journey as a software engineer at IBM in 1986. His responsibilities included systems integration and consulting projects, alongside developing software applications tailored for the petroleum and financial services sectors.
Microsoft
In 1992, Johnson joined Microsoft where he initially worked within global technical support before transitioning into sales and marketing roles. By 2001, he had spearheaded Microsoft’s introduction of wireless internet services into Starbucks locations—a project that initiated his collaboration with Starbucks founder Howard Schultz. Two years later, he was promoted to group vice president overseeing Microsoft’s worldwide sales, marketing, and services division, managing operations across roughly 80 countries.
On September 30, 2005, Johnson was named co-president of Microsoft’s Platforms division and assumed full leadership following Jim Allchin’s retirement in 2006. This position placed him in charge of Windows operating systems, Windows Live services, online advertising and search platforms, servers and tools, as well as MSN online. Managing $20 billion out of Microsoft’s $56 billion total revenue at the time, Johnson directed efforts to revamp the company’s online search and advertising strategies to better compete against Google. In recognition of his rising influence within technology circles, Fortune ranked him fourth among technology "Rising Stars" in 2006. As part of Microsoft’s Senior Leadership Team alongside Steve Ballmer and Bill Gates, he played a pivotal role shaping corporate strategy.
Johnson oversaw the launch of Windows Vista between 2006 and 2007 and led Microsoft’s $6 billion acquisition of online advertising company aQuantive in 2007. He also played an instrumental role during the negotiations for Microsoft’s attempted acquisition of Yahoo! before the deal was ultimately withdrawn in 2008. Johnson resigned from Microsoft in July 2008; upon his departure CEO Steve Ballmer acknowledged his substantial contributions to the company’s growth.
Juniper
In September 2008, Johnson assumed the role of CEO at Juniper Networks, headquartered in Sunnyvale, California. By July 2013, Juniper revealed that Johnson would retire and step down as CEO; however, he continued leading the company while a replacement was sought. Shaygan Kheradpir took over as CEO in January 2014.
Starbucks
Johnson joined Starbucks as president and COO in March 2015, managing worldwide operations, supply chain logistics, technology infrastructure for 21,000 stores across 66 nations, and digital platforms. He partnered with Schultz to develop a five-year strategic plan unveiled in December 2016. In April 2017, Johnson was promoted to become Starbucks’ fourth CEO, maintaining his position as president. By 2018, he had enhanced mobile ordering and pickup capabilities and secured a $7.15 billion global distribution agreement with Nestlé to market Starbucks products beyond retail locations—including integration into Nespresso and Nescafé lines. Under his leadership, Starbucks acquired full control of its East China joint venture for $1.3 billion, shuttered Teavana retail and online operations, and sold the Tazo brand to Unilever for $384 million.
Industry analysts provided mixed feedback on Johnson’s initial year; although U.S. sales were sluggish, he received commendations for expansion in China and a 15% increase in stock value from 2017 through late 2018. Following a widely publicized racial profiling incident at a Philadelphia store in 2018, Johnson issued a personal apology, engaged with affected parties, arranged settlements, temporarily closed all U.S. stores for racial-bias training sessions, and implemented mandatory anti-bias education programs for management and new employees.
In 2018, Johnson inaugurated the Tryer Center in Seattle to pilot new products and equipment innovations. Starbucks began efforts to develop biodegradable packaging and formed partnerships with UberEATS and Alibaba to broaden delivery services in the U.S. and China markets. Leveraging his technology expertise, Johnson positioned Starbucks at the forefront of retail innovation in mobile ordering and payment solutions. He was recognized as one of Seattle’s Most Influential People in 2018 due to his social impact initiatives.
By early 2019, Johnson scaled back several initiatives from Schultz’s tenure—including the Starbucks Reserve Roastery experiments—to enhance customer service quality, innovate beverage offerings, and accelerate growth in China. Starbucks’ stock price climbed by 79% by August 2019; Johnson also committed to delivering $25 billion in shareholder returns by 2020. He advocates for increasing the federal minimum wage; accordingly, in 2021 Starbucks announced a $15 minimum hourly wage for all U.S.-based employees ahead of its 50th anniversary. Except during the COVID-19 pandemic period, the company experienced consistent annual sales growth under his leadership.
As pandemic conditions improved in early 2021, Johnson notified Starbucks of his plans to retire. In March 2022, it was announced that he would step down as CEO and director effective April but would remain an advisor until September.
The North Star Project
Johnson’s initial significant initiative was the two-year North Star project launched in 2017 with the goal of realigning Starbucks’ customer service focus. However, employees indicated that baristas faced pressure to resolve service challenges caused by understaffing, increased demand from mobile orders and drive-thru traffic, as well as complicated beverage preparations. Essentially, they were expected to enhance customer experience or consider leaving the company.
Executive Compensation
In March 2021, Starbucks shareholders voted against Johnson’s proposed compensation package, influenced by recommendations from Institutional Shareholder Services (ISS) and Glass Lewis, reflecting apprehensions regarding executive remuneration. The proposal featured a one-time bonus of $1.86 million for the 2020 fiscal year. Investors expressed dissatisfaction with the ambiguous rationale behind awarding long-term incentives in cash and the recurring nature of such bonuses. Additionally, Glass Lewis highlighted that Johnson’s remuneration slightly exceeded that of comparable executives despite the company’s relatively weaker results.
Although advisory in nature, the shareholder vote opposed the compensation plan. Earlier, in late 2019, Starbucks’ board authorized a retention bonus for Johnson spanning three years, potentially reaching $50 million. His cumulative earnings from 2017 through 2019 totaled $44.1 million.
Public Service and Advisory Positions
In 2008, Johnson received an appointment from George W. Bush to serve on the National Security Telecommunications Advisory Committee (NSTAC), continuing his role under both Bush and Barack Obama. As chair of the cybersecurity subgroup, he advocated for initiatives aimed at mitigating cyber threats.
He has provided guidance to Catalyst, an organization dedicated to advancing women's careers. In October 2022, Johnson was named to the board of directors at Goldman Sachs.
Personal Background
Johnson resides in Washington with his wife, June, and their two sons. Around 2012, he took a brief retirement to concentrate on his health after being diagnosed with a treatable form of cancer. He enjoys an active lifestyle that includes basketball, boating, golf, skiing, and hiking. Inspired by basketball coach John Wooden, Johnson is a devoted sports enthusiast. He and his family also engage in daily practice of Transcendental Meditation.
See also
- List of chief executive officers
- List of New Mexico State University alumni
- Development of Windows Vista
References
- Living people
- 1960 births
- Juniper Networks
- Microsoft employees
- American chief executives of manufacturing companies
- American chief executives of food industry companies
- Computer networking professionals
- Starbucks board members
- New Mexico State University alumni
- Goldman Sachs board members
- Directors of Goldman Sachs