According to FT, Starbucks’ former CEO Schultz opposes a settlement with Elliott

Former Starbucks Chief Executive Officer, Howard Schultz, is reportedly opposing a potential settlement between the coffee giant and activist investor Elliott Investment Management, according to the Financial Times. Schultz, who holds a $2.03 billion stake as the sixth-largest shareholder, has voiced his concerns about the settlement to some members of Starbucks’ Board, sources told the newspaper.

Elliott has acquired a significant position in Starbucks and has been exploring ways to boost the company’s stock performance, as reported by Reuters last week.

Starbucks declined to comment on the matter, and neither Schultz nor Elliott immediately responded to Reuters’ inquiries.

Schultz, who stepped down from Starbucks’ Board last year, played a key role in transforming the company from a small coffee bean retailer to a global coffeehouse chain with over 36,000 stores worldwide. After returning as CEO for a third stint in 2023, he resigned later that year. Following Starbucks’ underwhelming quarterly earnings in April, Schultz called for a major overhaul of the company’s U.S. operations on LinkedIn.

Elliott, which has secured Board seats at companies like Etsy, Phillips 66, and Match earlier this year, is also advocating for changes at Southwest Airlines. The hedge fund, which manages $65.5 billion in assets, has also launched campaigns at Texas Instruments and Johnson Controls this year.