Starbucks CEO Kevin Johnson is stepping down, and Howard Schultz is taking over as interim CEO.

• After five years as CEO, Starbucks' Kevin Johnson is stepping down, and Howard Schultz will return as interim CEO, assuming leadership of the company he made a global brand.
• Starbucks hopes to find a permanent successor for Johnson by this fall.
• The CEO shift occurs amidst increasing unionization efforts among company employees.

CEO Kevin Johnson is retiring after five years on the job.

Starbucks will appoint Howard Schultz as interim CEO for the third time, as the company searches for a permanent successor while he leads the company to global success.

The company's shares increased by 7% in morning trading after Starbucks announced a leadership transition prior to its annual shareholder meeting on Wednesday.

Johnson announced that he would be considering retirement from Starbucks after 13 years with the company, as the global pandemic neared its end.

Johnson, who has been on the board since 2009 and became a member of the leadership team in 2015, is stepping down as president and CEO after 14 years with the company.

Johnson, as a former tech executive, used his expertise to steer Starbucks through the Covid pandemic, revamp its loyalty program, update its store footprint, and accelerate its expansion in China, making it the second-largest market.

Despite a 50% increase in Starbucks shares during his tenure, the stock still underperformed the S&P 500, which experienced an 83% rise in the same period.

Mellody Hobson, the chair of Starbucks' board, announced on CNBC's "Squawk Box" on Wednesday that the company plans to choose a permanent successor by the fall.

Hobson, co-CEO of Ariel Investments, stated that they won't be hiring over Zoom.

The company already has a number of strong candidates in contention for the top job.

Schultz, 68, stated that he had no intention of returning to the company. He served as CEO from 1986 to 2000 and again from 2008 to 2017. He also considered running for president before the 2020 elections.

Schultz stated that when one loves something, they feel a deep sense of responsibility to help when called. Although he did not plan to return to Starbucks, he knows the company must transform to meet a new and exciting future where all stakeholders thrive. With the backdrop of COVID recovery and global unrest, it is crucial to set the stage for a bold reimagining and reinvention of the future Starbucks experience for partners and customers.

The company announced that Schultz's salary as interim chief executive will be $1. Hobson stated that Starbucks intends to utilize "all of Howard's expertise and all of his brilliance" during the transition, but denied any plans for him to remain as the company's full-time chief executive.

We have a strong pool of candidates vying for the job. People are eager to take on the role, and we are confident that we will have a new leader by fall," she assured. "He won't be with us for three years. We'll have him until the fall, no questions asked. You can trust me on that.

It was unexpected that the board was aware of Johnson's plan to retire a year before announcing a transition or selecting a successor.

According to Timothy Hubbard, an assistant management professor at University of Notre Dame's Mendoza College of Business, Howard Schultz, being familiar with Starbucks' strategy and goals, is in a unique position to help the company in ways that other interim CEOs may not be able to. However, it is surprising that a company as large and esteemed as Starbucks does not have a solid succession plan in place.

Roz Brewer, who was previously the Chief Operating Officer and considered the potential successor, left the company in early 2021 to assume the role of Chief Executive Officer at another company.

The CEO shift at Starbucks is happening amidst growing efforts among the company's baristas to unionize. So far, about 140 Starbucks stores in 26 states have petitioned the National Labor Relations Board to unionize, and six locations have already voted in favor of a union.

Schultz and other Starbucks executives visited Buffalo, New York-area cafes prior to union elections in an effort to persuade baristas against unionizing.

The National Labor Relations Board filed a complaint against Starbucks for allegedly retaliating against two employees in Phoenix who were trying to unionize their store. On Tuesday, 75 investors in Starbucks wrote a letter to Hobson and Johnson, urging the company to adopt a policy of neutrality for all current and future attempts by its workers to organize.

Hobson stated on Wednesday that Starbucks had made some errors regarding the union drive.

"Why we rely on Howard at this moment is because of his unique ability to connect with our people and make a difference," she stated.

In recent months, four publicly traded restaurant companies have experienced notable CEO transitions, including Johnson's retirement announcement.

On Monday, it was announced that CEO Charlie Morrison has resigned to become the chief executive of Salad and Go, a smaller drive-thru salad chain.

Mellody Hobson, the chair of Starbucks' board, spoke on Wednesday.