Howard Schultz

After graduating Schultz stayed in Michigan and worked at a ski lodge while he mulled over where to go next.[14] He eventually took up a job in New York City as a salesman for Xerox and was quickly promoted to a full sales and marketing representative.[17] His sales record at Xerox had Swedish kitchenware manufacturer Perstorp AB recruit him in 1979 to lead their U.S. subsidiary, Hammarplast, as general manager.[17] Aged 26, Schultz was responsible for the coffee machine manufacturer's U.S. operations including directly managing a staff of twenty.[7] Two years into his new job, in 1981, he visited a client of Hammarplast, a fledgling coffee-bean shop called Starbucks Coffee Company in Seattle, Washington, curious as to why it ordered so many plastic cone filters.[8] After he met with the coffeehouse's three founding partners, Zev Siegl, Gordon Bowke, and Jerry Baldwin, he was impressed by their knowledge of coffee.[20] He successfully lobbied Baldwin, in particular, for a full year to allow him to join Starbucks in some capacity.[20]

Schultz speaking with press about Starbucks' presence in Canada, 2007.

In 1982, the founders of Starbucks onboarded him, aged 29, as the director of retail operations and marketing.[21] On a buying trip to Milan, Italy, in the Spring of 1983, Schultz noticed that the country's coffee culture was highly integrated in society, with coffee bars on every street.[22] There he drank his first caffè latte and learned that Italy's cafes' not only served high-quality espresso, they also served as meeting places or public squares.[22] On his return, he tried to persuade the owners to offer traditional espresso beverages in addition to the whole bean coffee, leaf teas and spices they had long offered.[23] After a successful pilot of the cafe concept, the owners refused to roll it out company-wide, saying they did not want to get into the restaurant business.[24] Frustrated, Schultz decided to leave Starbucks in 1985 and open a store of his own.[24] He needed $400,000 to start his business, but struggled financially and was preoccupied with his wife's first pregnancy.[24] Baldwin and Bowker offered to help, too.[25] Schultz also received $100,000 from a doctor impressed with the long-term return on such an endeavor.[25] By 1986, he had raised all the money he needed to open the first store, Il Giornale, named after the Milanese newspaper of the same name.[26] The store offered ice cream in addition to coffee, had little seating, and played opera music in the background to portray an Italian experience.[24] Two years later, the original Starbucks management team decided to focus on Peet's Coffee & Tea and sold its Starbucks retail unit to Schultz and Il Giornale for US$3.8 million.[24]

Schultz rebranded Il Giornale with the Starbucks name, and aggressively expanded its reach across the United States.[24] This type of market strategy received mix reception from both customers and competitors. The firm's relations with independent coffeehouse chains were strained, while some owners credited Starbucks with educating customers on coffee.[27] Schultz did not believe in franchising, and made a point of having Starbucks retain ownership of every domestic outlet. Schultz redoubled his efforts to position Starbucks as a "third place", outside of work and home, that people could gather and socialize.[28] He cultivated his coffeehouse as "social yet personal" space, dubbing it interchangeably as the "Starbucks Experience" or "third-place experience."[29] Schultz's positioning of Starbucks as a social hub is widely seen as introducing the second wave of coffee culture in the U.S., particularly in Seattle.[30][31][32] On June 26, 1992, Starbucks had its initial public offering (IPO) and trading of its common stock under the stock ticker SBUX.[33] The IPO raised $271 million for the company and financed the doubling of their stores.[34] On June 1, 2000, Schultz stepped down as CEO of Starbucks, moving to the new position of chief global strategist to help the company expand internationally.[35][36] He was succeeded by Orin Smith, who worked closely with Schultz as his chief financial officer during the 1990s.[37] After coordinating the first store opening in China in January 1999, Schultz took the following year to develop a customer base for coffee in the region.[38] His aggressive expansion in Chinese markets has been credited with reconciling the country's tea-culture with coffee consumption in China.[39][38] Throughout the late-2000s and early-2010s, Schultz directed the company to plan one to two store openings a day in mainland China.[40] Back in the firm's U.S. market strategic mistakes in various coffee wars with McDonalds and Dunkin' left Starbucks' marketshare damaged and the stock price down 75% from 2006 to 2008.[41] While revenue was growing broadly, it was largely dependent on new store openings creating a revenue bubble.[41] This slide in economic performance as well as a departure from the company culture that Schultz instated promoted his return.[36]

The early growth of Starbucks in China was driven by Schultz.

On January 7, 2008, Schultz returned as CEO of Starbucks after an eight-year hiatus. Retaking the helm at the height of the 2008 financial crisis, he succeeded Jim Donald who took over from Smith in 2005.[42] The coffeehouse was increasingly criticized for employee work conditions and their internal tipping policies during this time; in March 2009 he and the board approved a $100 million settlement in back tips in a barista-led class action lawsuit in California.[43] He led a mass-firing of executives, closed down hundreds of weak stores, and temporarily closed all U.S. locations to retrain employees in making espresso.[36][44] Schultz redoubled and enforced the firm's fair trade and ethical source policies for their coffee bean supply-chain in Africa and other coffee-producing countries.[45] In the succeeding two years he doubled their annual purchase of fair trade coffee, up to, by some estimates, 40 million pounds.[46] He went on to introduce a national loyalty program, marked with the creation of the Starbucks Reward Card.[44] In a push for technological innovation, Schultz arranged the appointment of the coffeehouse's first chief technology officer.[44] The company soon returned to organic growth, profitability, and to some extent, investor favor.[44] At this time, Schultz was earning a total compensation of $9.7 million, which included a base salary of $1.2 million, and stock options granted of $7.8 million.[47] In addition to his board membership with Starbucks Schultz was an early and significant stakeholder in Jamba Juice in 2011,[48] and on the board of payment processing company, Square, Inc. until 2014.[49] During the summer of 2014, Schultz launched the Starbucks College Achievement Plan, a partnership with Arizona State University, which allows all employees at Starbucks working 20 or more hours a week to qualify for free tuition through ASU's online courses.[50] It was reported in 2018 that Schultz had taken a one-dollar annual salary sometime in past couple of years.[51]

Schultz again stepped down as CEO in December 2016, assuming the position of executive chairman.[44] From 2008 to 2017, Schultz oversaw nearly $100 billion added to the company's market capitalization.[52] From its IPO in 1992, his tenure saw to a 21,000% increase in shareholder value, according to institutional reports.[53] From the 1980s to his retirement, a series of successful coffee wars increased Starbucks from 11 coffeehouses in Seattle to 28,000 stores in 77 countries.[54] On June 4, 2018, Schultz announced that he would retire from active management of Starbucks, after 37 years, as he was considering amongst other options a campaign for U.S. president.[55] Kevin Johnson, the firm's president and chief operating officer for the previous two years, succeeded Schultz as CEO while Myron Ullman took over as chairman in June 2018.[56] Schultz's final act as chief executive was a visit to Starbucks' first store in Seattle's downtown Pike Place Market.[40] The coffeehouse's board of directors gave him the inaugural honorary title of Chairman emeritus to commemorate his tenure; he has served in this capacity since June 2018.[57] His legacy as chief executive of Starbucks has been universally applauded for it longevity, entrepreneurship, business success, and leadership.[58][59][60] Alicia Kelso, opining in Forbes, wrote that a considerable portion of his legacy revolves around his efforts to expand employee benefits.[61] "As long as Schultz has been at the helm," she stated in 2020, "Starbucks has been either at the forefront or very close to it on a number of [employee] initiatives... perhaps [his] most impressive accomplishment."[61] Conversely, his business legacy at Starbucks is often negatively contrasted with his ownership of the Seattle SuperSonics during his first hiatus as chief executive.[62]

Schultz, as chairman emeritus of Starbucks, in 2019

In January 2001, Schultz led a group of ten investors who bought the National Basketball Association's Seattle SuperSonics and the Women's National Basketball Association's Seattle Storm from the Ackerley Group for $200 million.[63] During his tenure as the SuperSonics team owner, he was criticized for his naïveté and propensity to run the franchise as a business rather than a sports team.[64] Schultz feuded with player Gary Payton, feeling that Payton disrespected him and the team by not showing up to the first day of training camp in 2002.[65] In February 2006, he stated that the Sonics needed $200 million to renovate KeyArena or build a new arena for the team, and if the Washington State Legislature would not approve this, he would look to sell or move the team.[66] On July 18, 2006, Schultz sold the team to Clay Bennett, chairman of the Professional Basketball Club LLC, an Oklahoma City ownership group, for $350 million, after having failed to convince the city of Seattle to provide public funding to build a new arena in the Greater Seattle area to replace KeyArena. At the time of the team's sale, it was speculated that the new owners would move the team to their city some time after the 2006–2007 NBA season.[67]

Schultz filed a lawsuit against Bennett – in April 2008 – to rescind the July 2006 sale based on what Schultz claimed was fraud and intentional misrepresentation. However, Schultz dropped the lawsuit in August 2008. When Bennett purchased the SuperSonics and its sister franchise in the WNBA, the Seattle Storm, for $350 million, he agreed to a stipulation that he would make a "good-faith best effort" for one year to keep both teams in Seattle. The sincerity of the good-faith effort was widely disputed by the way Bennett acted and by direct quotes from his partner Aubrey McClendon. On January 8, 2008, Bennett sold the Storm to Force 10 Hoops, LLC, an ownership group of four Seattle women, which kept the team in Seattle.[68] On July 2, 2008, the city of Seattle reached a settlement with the new ownership group and the SuperSonics moved to Oklahoma City and became the Thunder for the 2008–09 NBA season.[69] The sale to the out-of-state owners considerably damaged Schultz's popularity in Seattle.[70] In a local newspaper poll, Schultz was judged "most responsible" for the team leaving the city.[71] Ten years later, in 2019, Schultz accepted full responsibility for the sale. "Selling the Sonics as I did is one of the biggest regrets of my professional life. I should have been willing to lose money until a local buyer emerged. I am forever sorry."[72]

As chief executive of Starbucks, Schultz has long voiced his concern about the impact climate change has on coffee production.[123] He has specifically cautioned the destruction of coffee bean's "quality and integrity" if their natural ecosystems are damaged.[124] As CEO, he increased the firm's reliance on renewable energy, water conservation, and ramped up recycling in stores nation-wide.[125] He has called the 2017 U.S. withdrawal from the Paris Agreement a "tremendous mistake."[126] "Things are changing and we are literally, as a world, on a collision course with time and we must address it, we must fix it, we must have personal responsibility," Schultz said in 2020.[126] To finance a green economy, he has advocated for a combination of taxing oil and gas as well as harnessing wind energy.[126] Schultz has openly criticized the 2018 Green New Deal – which would cost an estimated $51–$93 trillion over the succeeding decade – for being well-intentioned but economically unrealistic.[127]

In December 2012 Schultz penned an open letter to various newspapers across Seattle and the United States about an upcoming intuitive at Starbucks involving partisan gridlock in Washington. On December 27, Starbucks employees in Washington were asked to write "come together" on all cups distributed, to encourage bipartisanship in the federal government.[128] In a 2019 interview with 60 Minutes, he told the outlet, "I don’t care if you’re a Democrat, Independent, Libertarian, Republican. Bring me your ideas."[129] During his exploratory 2020 presidential campaign, Schultz explained to multiple media outlets that, if elected, he wished to exclusively legislate with bipartisan support.[130] This stance includes the appointment and confirmations of U.S. Supreme Court justices.[131]

His early childhood financial insecurity instilled in him an "aversion to debt" which he carried forward in his professional career by ensuring Starbucks had a always had a cash-rich balance sheet and, politically, as a deficit hawk.[132][133] During his 2019 exploratory bid for the presidency, Schultz framed his candidacy as that of a socially liberal deficit hawk with fiscally moderate leanings.[134] In June 2018, Schultz stated in an interview that he thought the national debt is "the greatest threat domestically to the country" and that "we have to go after entitlements."[135][136] He has also stated that the nation's annual sovereign interest payments, totaling over $400 billon in 2020, is "unsustainable."[137] President Barack Obama's chief economist, Jason Furman, was critical of Schultz's hard-lined "obsessive" position against sovereign debt.[138] "America is not a company" Furman stated in February 2020, "many successful companies are much more leveraged than the United States."[138]

Throughout the 2018 start and continuation of the U.S. trade war against China, Schultz has been critical of its motivations and handling.[137] Calling it a "strategic mistake", he has advocated for a reduction of trade tariffs and various other import-export taxes.[139] If the U.S. is to maintain world-wide economic leadership, he believes, it must remain an open market economy.[140] After President Trump levied a 10% tariff on all goods coming from Mexico in 2019, Schultz defended U.S. border states by advocating for immigrant-run companies.[141]

Schultz has maintained close relationships with heads of African countries and other coffee-producing countries in order to facilitate the fair trade of coffee beans.[142] After he returned as chief executive in 2008, he doubled the amount of fair trade coffee Starbucks bought.[143] By the end of 2009, 65% of all coffee product was fair trade and by 2015, nearly all of it was.[143] As chairman, he directed Starbucks to sign a licensing, distribution, and marketing agreement with the government of Ethiopia in 2007, to ensure increased pay to farmers.[144] In the summer of 2009, Schultz traveled to Kigali, Rwanda to commit to an agreement that all 747 stores in Britain would be certified free trade by year-end.[145] The agreement made Starbucks, according to The Guardian, "far and away the biggest buyer of fair trade coffee in the world."[145] Paul Kagame, Rwanda's president, asked Schultz to consider moving roasting and processing plants from the U.S. to his country, but Starbucks decided to keep their value chain domestic.[145]

Schultz in 2019

Schultz is a pro-business and is a vocal supporter of the free market. While he was exploring running for the White House in 2020 he criticized the, as he put it in March, "vilification" of business and capitalism in American society.[146] His potential election to the White House has been labeled a "business presidency", not unlike that of Donald Trump's tenure.[147] During the 2019–20 coronavirus pandemic (COVID-19), he called on public officials at all levels of government to enact fiscal stimulus to small businesses harmed during the crisis. "We can’t have a scorched earth situation in which 30 to 40% of restaurants and small businesses do not reopen," Schultz told CNBC, "It’s not a time for politics."[148] Impatient with the time it took for such a stimulus to pass through Congress, Schultz sent out $850,000, (in $500 cash payments) to restaurant workers in Seattle in early April 2020.[149] After the federal government passed the Coronavirus Aid, Relief, and Economic Security Act, including $300 billion to support small businesses, Schultz commented: "the [small business dollar amount ] should have a T in front of it."[150] He then criticized the Act's Paycheck Protection Program (PPP) for being only a temporary solution given its funds were depleted from April 3 and April 16, 2020.[150] During the 2010s stock market boom, he said, companies were "camouflaged by the record number of profits and cash on the balance sheets" leaving them exposed to substantial business risk amid the coronavirus.[150] On April 21, he lobbied the federal government to institute a "Marshall Plan for small businesses", in the form of federally-backed loans.[151]

Schultz said he supported "comprehensive tax reform" in January 2019.[152] He opposed Alexandria Ocasio-Cortez's proposal to raise the marginal tax rate on income over $10 million to 70%, saying it was "punitive" and contrary to the American Dream.[152] He also opposed Donald Trump's passage of the Tax Cuts and Jobs Act of 2017, which lowered high-income and corporate taxes.[126] Schultz decried the tax change stating "Corporations should not have been given that sweet deal without any incentive to do anything for their employees or the communities they serve."[126] During a CNN town hall, he stated that the wanted the marginal tax rate for the highest-earning citizens to be increased from 37% to 39%.[126] Schultz is against lowering taxes for large corporations, favoring tax cuts for middle-market and small businesses.[137]

After news broke out in mid-2013 that Starbucks took an institutional stance in favor of marriage equality, specifically same-sex marriage, a backlash from conservative and religious groups across the U.S. ensued.[153][154] When Schultz was pressed about the issue hampering earnings growth at a 2013 shareholder meeting, he took a hard-lined stance in favor of marriage equality. "Sell your shares," he told the audience, "buy shares in another company."[155] His response was widely publicized, with The Washington Post stating: "Schultz [did] something CEOs rarely do: He told off a shareholder."[156] Fortune applauded him for "[taking] on gay marriage before it was a topic most executives would even touch.[157]

Under his leadership Starbucks became the first U.S. company to offer part-time workers, particularly baristas, healthcare.[158][159][160] Schultz has described Medicare For All as the "right thing to do" but "we need to go back to the Affordable Care Act (ACA), refine it and fix it."[152] His primary concern regarding the ACA is the rising premium cost (amount paid for monthly healthcare coverage) for patients, which have increased by two-thirds since its 2010 passage.[161] He has vocally criticized Republican-led efforts to repeal the ACA as uncooperative.[162] In January 2019, he stated "everyone has a right to affordable health care," but it this right is often derided by pharmaceutical lobbing groups.[163] In an interview with CNBC, Schultz said he would "force Big Pharma to negotiate drug prices with the government."[164] He has argued for increased competition between healthcare providers in order for patients to get the lowest prices available for medication.[165]

Schultz supports comprehensive gun control and universal background checks "with no loopholes.”[126] In July 2013, Starbucks customers brought in their weapons and guns into local stores to show appreciation for the coffeehouse's support of the Second Amendment.[166] Later in September, as CEO, Schultz asked customers to no longer bring guns into its stores.[167] His no-gun policy was seen as a "respectful request" rather than a corporate directive.[167] Schultz has however supported the Second Amendment with respect to its application to recreational hunting and gun-sport.[161] "I have a hard time understanding why people need to carry carry an AR-15 around the streets where they live."[165] He told supporters in February 2019 that with respect to background checks, anyone with mental health issues or criminal records should have increased supervision.[165]

Schultz is pro-immigration and supports moderate border security. He supported a pathway to citizenship for illegal immigrants who had entered the U.S. as children.[152] He called for greater border security, but vocally opposed President Donald Trump's proposal of a border wall.[152] In 2017, Schultz got into a highly publicized argument with President Trump after he instructed Starbucks to disregard an executive order barring Syrian refugees into the country.[168] Within 24 hours of the executive order, Schultz wrote to his employees that recent immigrants and refugees, particularly those with strong ties to the U.S. military, would be fast-tracked to employment.[169] President Trump then called on his supporters to boycott Starbucks.[170]

Schultz speaking to U.S. Marines and Sailors at Camp Pendleton in California, 2014.

In 1996, Schultz founded Onward Veterans, a private foundation, aiming to help post-9/11 military veterans successfully transition to civilian life.[171] In 2012, he brought former U.S. Defense Secretary Robert Gates onto Starbuck's board in 2012, who "told him stories of veterans struggling to return to civilian life."[172] A year later, Schultz instructed distribution centers to ship over 60 pallets of coffee beans and 175,000 sleeves of instant coffee to troops.[173] In 2014, Schultz authored his first non-business book, For Love of Country: What Our Veterans Can Teach Us About Citizenship, Heroism, and Sacrifice, co-written with Rajiv Chandrasekaran.[98] The book discussed the U.S. military's role in the Iraq War and War in Afghanistan, and their transitions back into civilian life. To market the book he visited military bases all over the country and later expanded tuition support for veterans families.[173][174] A year later, as Starbucks CEO, he promised to hire 10,000 military veterans by 2018.[175] After surpassing that mark in 2017 he pledged to hire 25,000 veterans by 2025, a directive his successor, Kevin Johnson, continued.[175]

A major centerpiece of his 2020 exploratory campaign for U.S. president centered on his long-term commitment to military causes through private philanthropy, corporate initiatives, and public advocacy. In February 2019, Schultz criticized the U.S. Department of Veterans Affairs (VA) for being too bureaucratic and Veterans Day for being turn into a "weekend sale" instead of a day of honor.[176] Schultz's candidacy was endorsed by former U.S. Army General Peter Chiarelli.[177] Over a radio interview in March 2019, when asked if he would be an effective commander-in-chief, Schultz responded: "I probably have spent more time in the last decade certainly than anyone running for president with the military."[178] His comments were criticized by Pete Buttigieg and Tulsi Gabbard, both of whom served in the military, for being tone deaf.[179] Schultz later apologized for his remarks.[180] That month he traveled to Texas to meet with veterans where he advocated for a larger, more judicious VA budget.[172]

A long-time resident and business owner in Seattle, Washington, Schultz has been moderately present in state politics. He hosted a fundraiser in his home for John Edwards during the 2008 presidential election cycle, eventually donating to the campaigns of Hillary Clinton and Barack Obama.[181] In 2012, he had Starbucks express support for Washington state's Referendum 74, which legalized same-sex marriage in that state.[182] At the start of 2019, when Seattle passed the highest minimum wage ordinance in the nation ($15),[183] Schultz voted against it, fearing it would have an adverse effects on employment.[184] His voting record in Seattle has been described by The Seattle Times as a "pattern of ignoring many local elections over the decades."[185] From 2005 to 2019, he reportedly voted in 11 of 38 municipal elections.[186] However, he did vote in all four presidential elections during that time period.[187] The paper reported in 2020 that while Schultz is heavily involved in the state's political debates, he often "doesn't show up to vote" in various municipal elections including that of the city's mayor and city council.[188] Washington governor Jay Inslee, who was running against Schultz in the 2020 election, criticized him for his absence in state politics.[189] However The Times went on to say that his low voter turn out "doesn’t mean [he] wouldn't make a good president."[188] In February 2019, he issued a statement commending Seattle voters who maintained a perfect voting record and explained that a busy travel schedule prohibits him from materially participating in local votes.[190] Former U.S. Congressman for Washington, George Nethercutt, a moderate Republican, opined that Eastern Washington "may like what they hear and vote for [Schultz]" more than the Western region.[191]

Schultz is seen as a foreign policy "liberal hawk",[192] favoring socially liberal politics domestically and aggressive, interventionist polices abroad.[193] Generally, he is a supporter of neoliberal institutionalism and international cooperation.[194] In line with this, Schultz advocates for a U.S.-centered unipolar world where countries work with America to ensure stability and peace.[194]

• United Kingdom: During the 2009 economic crisis, Schultz stated in a highly-publicized interview with CNBC that "the place that concerns us the most is western Europe, and specifically the UK. The UK is in a spiral".[195] His comments were meant to express concern with the levels of unemployment and consumer confidence in the United Kingdom.[195] The British Business Secretary at the time, Peter Mandelson, responded negatively to the statement saying that "the UK was not spiralling, although I've noticed Starbucks is in a great deal of trouble." Mandelson later suggested that Schultz was projecting his own company's trouble in the United Kingdom onto the wider national economy.[195] Starbucks issued an office apology soon thereafter.[195]
• Syria: Schultz criticized the U.S. military withdrawal from Syria in 2019, saying the move had "damaged America’s relationships with foreign allies."[126] Furthermore, Schultz lamented the "power vacuum" left by the U.S. in the Middle East as a result of their withdrawal.[196] He supported the idea of leaving a skeletal army force in the region to ensure a minimum level of stability and U.S. influence.[197]
• Russia: He is a vocal opponent of Russian influence in U.S. politics, calling the country an “enemy of the United States.”[198]
• Israel: He is an active supporter of the state of Israel and its establishment.[199] Schultz has advocated for closer relations between the U.S. and Israel.[200] He was the subject of a false conspiracy theory that he personally financed Israeli military operations in 2009.[201][202]
• China: The commensurate rise of China in the international sphere with the U.S. prompted Schultz to call the country "neither an enemy nor an ally, but a fierce competitor."[126] According to Foreign Policy, his corporate interests in Starbucks could make him implement pro-Chinese policies and legislation.[38] Hedge fund manager Bill Ackman similarly said that Schultz's election to the U.S. presidency would essentially be an insurance policy for Starbucks. "The last thing the Chinese would do is go after the next American president’s company," Ackman told the New York Times in 2020.[203] Schultz has repeatedly praised the country's One Belt Road initiative, an infrastructure plan aimed at better connecting territorial China and improving foreign direct investment.[140]

At the start of the 2012 United States presidential election Schultz's name was floated as a potential Democratic candidate.[181] After he instructed Starbucks employees in Washington to write "come together" on all cups to encourage bipartisanship in the federal government on December 26, press speculation intensified.[128][204] However, Schultz "batted down" these reports days later and confirmed that he was not running for political office.[181] He continued to publicly bemoan the political climate at the time, saying he was "not optimistic about the leadership" of the U.S. on national television.[205] Papers continued to question the finality of his decision with New York Magazine writing "We look forward to your 2016 campaign".[204]

In late September and early August 2015, press speculation began to surface about a potential run in the upcoming 2016 United States presidential election for Schultz.[206] Maureen Dowd, of The New York Times, broke a story on August 1 that friends of "America’s lord of latte, Howard Schultz, have been pressing him to join the Democratic primary."[207] Over the next couple of days media outlets began to speculate if Schultz was going to make a formal announcement. According to Fortune, he was positioned to be a "worthy party back-up to [Hillary] Clinton."[208] Schultz wrote a New York Times op-ed on August 6, 2015 denying this, stating, "Despite the encouragement of others, I have no intention of entering the presidential fray. I'm not done serving Starbucks."[209] The educational and healthcare benefits he provided to Starbucks employee was seen as a major selling point for his candidacy.[210] Newspapers such as The Atlantic, billed Schultz as the "liberal Donald Trump" due to his comparable career as a businessman and wealth.[211] In November 2017, it was revealed that Schultz was on a list of potential vice presidential picks for Clinton.[212] He was additionally considered by her team to serve as United States Secretary of Labor under her administration.[213]

Schultz being interviewed in 2020

After Schultz stepped down from Starbucks in 2018, political commentators speculated whether he would run in the 2020 United States presidential election.[214][215] There was additional encouragement from a draft movement called Ready for Schultz.[216] At the start of 2019 The New Republic ran a piece called "Run, Howard, Run!" encouraging him to enter the contest.[217] He hired Steve Schmidt and Bill Burton, two political consultants, to assess his candidacy.[218] On January 27, 2019, he stated in an interview with 60 Minutes that he was exploring a run for president as an independent candidate, and that he considered running as a centrist.[219] He was reportedly willing to spend $300 to $500 million on the 2020 election.[220] Schultz's proposed independent candidacy was widely condemned by Democrats who argued that Schultz's third-party candidacy would help to re-elect President Trump by splitting the vote of those opposed to the president.[221] Political scientist Larry Sabato said that Schultz's candidacy was likely to benefit Trump.[221] However, a CNN analysis believed that "running on a deficit-reduction platform might end up syphoning as many Republican moderates away from Trump as liberals or independents away from the Democratic nominee."[221] In response to claims that his candidacy would benefit Trump, Schultz said, "Nobody wants to see Donald Trump removed from office more than me."[222] His first town hall in Seattle received mixed reception with protestors holding up "venti mistake" and "grande ego" banners while his actual speech was well-received.[223] As a large shareholder of Starbucks stock, Schultz was repeatedly asked about potentially selling all of his holdings if elected to the White House.[165] "There's multiple ways to do this, set up a blind trust, do lots of things to remove any conflict of interest" he replied.[165] He had however promised to release all of his tax returns if elected.[165]

Later in February, Schultz said he would stay out of the race if the Democrats nominated "a centrist Democrat."[224] In May 2019, Schultz delayed his decision and by September 6, officially ruled out a presidential run, stating that it wasn't the best way to "serve our country at this time."[225] The eventual progression of centrist candidate Joe Biden as the presumptive nominee motivated Schultz to step aside due to their overlapping political ideologies.[226][227] While he has not officially endorsed Biden for the presidency, Schultz has stated in interviews that he "admires" the candidate.[146]

His accumulation of Starbucks stock options during his four-decade tenure as chief executive is the primary source of his net worth. Throughout his time as a shareholder, the stock price has increased by 21,000%.[53] Schultz was named the 680th-richest person in the U.S. in April 2020 by Forbes with a net worth of $4.0 billion.[4] In 2019, Schultz was listed as the 145th-richest person in the country.[4] His exploration of running for political office has prompted calls for him to sell all of his stock holdings in Starbucks to appease any conflict of interest.[248] Although not firmly committing to sell his shares upon election, Schultz has expressed interest in setting up a blind trust to hold his shares.[165] However, Foreign Policy noted that even if in a blind trust, his interest in the shares could still prompt a conflict of interest in because the shares' performance is linked with the company's performance.[38]

In 1998, Schultz established venture capital firm Maveron with investment banker Dan Levitan.[249] He and Levitan primarily invest in start-up companies and seeding consumer-focused companies, such as eBay, Shutterfly, and Zulily.[250] As of July 2014, the venture capital firm was worth $1.3 billion in assets under management (AUM).[251]