Former Starbucks CEO Howard Schultz believes that the coffeehouse chain should not make a settlement with activist investor Elliott Management.
Elliott built up a sizeable stake in Starbucks recently and has been pushing the company to improve its underperforming stock, including demands for board representation. The two sides held several meetings in which they discussed the best path forward but are yet to come to an agreement.
According to the Financial Times, Schultz is opposing Starbucks’ settlement with Elliott and has made his opinion known to several board members. Schultz still remains one of the biggest shareholders in Starbucks, with an estimated holding of around $2 billion.
Schultz played a significant role in transforming Starbucks from a coffee beans and equipment seller to the world’s largest coffeehouse chain. He served as the company’s CEO in three separate stints, most recently stepping down from the position in 2023.
While he is no longer associated with the company as an executive, Schultz continues to offer his views on its business. He recently published a post on LinkedIn in which he criticized Starbucks’ recent struggles and called for an overhaul of operations in the United States.
Starbucks stock closed at $74.05 per share on Friday, being 20% down year-to-date.