Microsoft CEO Satya Nadella has resigned from the Starbucks board, as disclosed in a regulatory filing by the Seattle-based coffee company on Friday.
In his resignation letter, Nadella did not specify a reason for his departure but expressed strong confidence in Starbucks CEO Laxman Narasimhan and the senior leadership team.
Howard Schultz, former Starbucks CEO, recently faced criticism for a LinkedIn post in May, following the company’s missed earnings expectations. Schultz called for “contrition and renewed focus and discipline on the core.”
Nadella joined the Starbucks board in 2017, coinciding with his former Microsoft colleague Kevin Johnson’s preparation to assume the role of Starbucks CEO. Nadella’s appointment was seen as a strategic move, bringing valuable expertise in technology and international operations.
Nadella’s resignation coincides with Starbucks’ increased focus on technology to drive sales. Approximately 8 percent of the company’s U.S. transactions are now made through its mobile app, up from 6 percent in the previous quarter. At its recent investor day, Starbucks outlined plans to enhance 80 percent of its more than 25,000 stores worldwide with digital capabilities by 2019.
Nadella’s resignation leaves the Starbucks board with ten members.
Starbucks has nominated Rosalind Brewer, CEO of Wal-Mart Stores Inc’s Sam’s Club division, and Jørgen Vig Knudstorp, executive chairman of the LEGO Brand Group, to its board. These nominations will expand the board from 12 to 14 members, subject to shareholder approval at the annual meeting on March 22.
Additionally, long-time director Jamie Shennan will retire before the annual meeting, the company announced.
