Longtime Starbucks board member Hobson is out
Starbucks lead director Mellody Hobson will not seek reelection after a 20-year tenure, the company disclosed in a Thursday evening regulatory filing.
Hobson, who was recruited to the board in 2005 by former Starbucks CEO Howard Schultz, did not leave the board over any disagreement with the company, the filing stated. Starbucks’ share price ticked down slightly after market trading hours following her announcement.
In a letter dated Jan. 14, Hobson said she hasn’t sold a single share in Starbucks in 20 years. Hobson owns 729,000 shares, currently worth about $65 million, according to FactSet. “Although the company has had a stunning 52-year run, I strongly believe its best days lie ahead,” she said.
The coffee giant has struggled in recent years with stagnant sales and a tumultuous relationship with a union that represents thousands of its workers. Starbucks poached a new CEO, Brian Niccol, from Chipotle last year. Niccol has instituted small but noticeable changes at the company, like ending the nondairy-milk tax and starting a no-loitering policy.
Niccol is the third person picked to succeed Schultz since he first stepped down in 2017. Hobson, who is also CEO of Ariel Investments, said she’s confident in Niccol’s leadership.
“With Brian Niccol firmly at the helm (after a dogged pursuit!), I am confident Starbucks is in excellent hands. For this reason, I now feel comfortable stepping away from the board and do not plan to stand for re-election. I believe it is important for Brian to have a lead director who can sit alongside him for years to come — my twenty years is already a long time.”
It’s unclear who will fill her seat at Starbucks, which has faced pressure in the past year from activist investors Elliott Management and Starboard Value.
The coffee giant has struggled in recent years with stagnant sales and a tumultuous relationship with a union that represents thousands of its workers. Starbucks poached a new CEO, Brian Niccol, from Chipotle last year. Niccol has instituted small but noticeable changes at the company, like ending the nondairy-milk tax and starting a no-loitering policy.
Niccol is the third person picked to succeed Schultz since he first stepped down in 2017. Hobson, who is also CEO of Ariel Investments, said she’s confident in Niccol’s leadership.
“With Brian Niccol firmly at the helm (after a dogged pursuit!), I am confident Starbucks is in excellent hands. For this reason, I now feel comfortable stepping away from the board and do not plan to stand for re-election. I believe it is important for Brian to have a lead director who can sit alongside him for years to come — my twenty years is already a long time.”
It’s unclear who will fill her seat at Starbucks, which has faced pressure in the past year from activist investors Elliott Management and Starboard Value.
