Howard Schultz

if your listeners take anything away from what we've talked about is my love of the company is so significant that I changed my life and I came back to the company. Now, when I came back, And I want to be fair. I don't want to criticize anyone. But when I came back, I saw things that really surprised me about the lack of investment over a four to five year period.

if your listeners take anything away from what we've talked about is my love of the company is so significant that I changed my life and I came back to the company. Now, when I came back, And I want to be fair. I don't want to criticize anyone. But when I came back, I saw things that really surprised me about the lack of investment over a four to five year period.

And also, I didn't like the way the stock buybacks were being used to basically increase EPS. And it's no way to run a company. So the first day I came back and I knew what the market would do is I announced that we were suspending the stock buybacks and the stock went down. I expected it. And I announced that we were going to take basically the money we were using to stock buybacks for the year.

And also, I didn't like the way the stock buybacks were being used to basically increase EPS. And it's no way to run a company. So the first day I came back and I knew what the market would do is I announced that we were suspending the stock buybacks and the stock went down. I expected it. And I announced that we were going to take basically the money we were using to stock buybacks for the year.

And I think it was north of $2 billion to invest back into the people of Starbucks, the partners, which I did. The most important thing I did, though, because I'm not a messiah, but I have an instinct about the company and I know the inner workings of the company better than anyone else. I know the people. And so in a year's time,

And I think it was north of $2 billion to invest back into the people of Starbucks, the partners, which I did. The most important thing I did, though, because I'm not a messiah, but I have an instinct about the company and I know the inner workings of the company better than anyone else. I know the people. And so in a year's time,

despite the underinvestment and the challenges, we brought the company back to a much healthier place operationally, and certainly the stock price was significantly higher when I left. I think when I came back, when I started, it was in the 70s. When I left, it was, you know... But that's an output.

despite the underinvestment and the challenges, we brought the company back to a much healthier place operationally, and certainly the stock price was significantly higher when I left. I think when I came back, when I started, it was in the 70s. When I left, it was, you know... But that's an output.

That's investors voting on the performance.

That's investors voting on the performance.

Yeah, yeah. We don't have to talk about the stock price if you don't want to. Nevertheless, again, succession. And... The board led a succession process. You have to remember, I wasn't on the board for a long four or five years. And I resigned when I decided to leave the company after a year, despite the board asking me to stay another year.

Yeah, yeah. We don't have to talk about the stock price if you don't want to. Nevertheless, again, succession. And... The board led a succession process. You have to remember, I wasn't on the board for a long four or five years. And I resigned when I decided to leave the company after a year, despite the board asking me to stay another year.

I just said, I've done my duty, we have to find a new CEO. They wanted you to be interim CEO for a second. Yeah, they wanted, it was up to me. And so the board led a search. There was a number of candidates. Laxman was chosen. I met him, I approved his hiring, but the search community was driving the process. So now we're a year later. And I think probably let's just fast forward.

I just said, I've done my duty, we have to find a new CEO. They wanted you to be interim CEO for a second. Yeah, they wanted, it was up to me. And so the board led a search. There was a number of candidates. Laxman was chosen. I met him, I approved his hiring, but the search community was driving the process. So now we're a year later. And I think probably let's just fast forward.

It hasn't been a great year for Starbucks. In fairness to Laxman, there's a lot of external issues that have contributed to the pressure, like on every company. But the company has not executed the way that I think it should have. I go into the stores. I know the company, and I think we're not at our best right now. Why did I write the letter?

It hasn't been a great year for Starbucks. In fairness to Laxman, there's a lot of external issues that have contributed to the pressure, like on every company. But the company has not executed the way that I think it should have. I go into the stores. I know the company, and I think we're not at our best right now. Why did I write the letter?

I didn't write the letter because he had a bad interview on Kramer. This is on LinkedIn? Yeah. I wrote the letter because I had written a couple of other letters. Probably the iconic letter I wrote was entitled The Soul of the Brand. And I was writing that letter because I don't get financial information, so I don't have any understanding whether the company's making the quarter or not.

I didn't write the letter because he had a bad interview on Kramer. This is on LinkedIn? Yeah. I wrote the letter because I had written a couple of other letters. Probably the iconic letter I wrote was entitled The Soul of the Brand. And I was writing that letter because I don't get financial information, so I don't have any understanding whether the company's making the quarter or not.

I was as surprised as anyone else to see the dramatic drop in revenue and in profit. But I wrote The Soul of the Brand because I could smell instinctively that there were things going on that just did not feel right to me, that the shine was off the brand, that partners were maybe not as inspired as they had been.

I was as surprised as anyone else to see the dramatic drop in revenue and in profit. But I wrote The Soul of the Brand because I could smell instinctively that there were things going on that just did not feel right to me, that the shine was off the brand, that partners were maybe not as inspired as they had been.