Former Starbucks CEO Howard Schultz is opposing a potential settlement between the coffee chain and activist investor Elliott Investment Management, according to the Financial Times. Schultz, the sixth largest shareholder with a $2.03 billion stake, has expressed his opposition to some board members. Elliott has built a significant position in Starbucks, discussing ways to boost the company’s stock performance.
Starbucks declined to comment, while Schultz and Elliott did not immediately respond to Reuters’ requests. Schultz, who stepped down as CEO in 2023, played a pivotal role in transforming Starbucks into a global coffeehouse chain. Following disappointing earnings in April, Schultz called for an overhaul of U.S. operations. Elliott, managing $65.5 billion in assets, has been pushing for changes at various companies, including Southwest Airlines.
Shares of Starbucks, down nearly 23% this year, saw a slight increase in extended trading on Friday.