Strategic Organizing Center Nominates Three Candidates Starbucks (SBUX) Board

The Strategic Organizing Center (the “SOC”), a shareholder of Starbucks Corporation (Nasdaq: SBUX) (“Starbucks” or the “Company”), today announced it has nominated three director candidates – Maria Echaveste, Hon. Joshua Gotbaum and Wilma Liebman – for election to the Starbucks Board of Directors (the “Board”) at the upcoming 2024 Annual Meeting of Shareholders (the “Annual Meeting”).

The SOC is a coalition of labor unions, including the Service Employees International Union (“SEIU”). The SOC-affiliated unions represent more than 2.3 million union members. Regarding the nominations, the SOC stated:

“For more than two years, Starbucks has gone to historic lengths to counter its employees’ campaign to have their voices heard. This has not only cost untold millions in legal fees and other expenditures, but the constant media, policymaker and regulatory scrutiny have caused potentially irreversible damage to the value of the Company’s previously enviable brand. Regardless of one’s personal views on whether Starbucks should support or continue to resist the unionization of its store employees, the Board’s current approach likely jeopardizes its ability to fulfill its fiduciary duties to investors and has resulted in arguably one of the most glaring and destructive examples of human capital mismanagement corporate America has seen. This is why we believe change is needed at the Board level. Our nominees can bring fresh perspectives and the right expertise to help improve oversight and safeguard the best interests of Starbucks’ shareholders, customers and employees.

Since November 2021, the National Labor Relations Board (“NLRB”) – the federal agency responsible for protecting workers’ rights – has issued over 120 complaints against Starbucks, covering some 420 charges of violating federal labor law. These complaints cover a wide range of allegations of wrongdoing, including illegal discipline and firings, store closures to halt union activity, worker surveillance and the Company’s failure to bargain in good faith. In some of the most egregious cases since 2022, the NLRB has sought injunctions from federal courts. These cases involving Starbucks represent a full third of all injunctions sought by the NLRB against any employer during this time period.

At a time when Starbucks has set an ambitious goal of opening more than 17,000 new stores by 2030, it cannot waste any more resources fighting its own workers. While these missteps have not yet led to a visible strain on the Company’s financial performance, given the reputational damage and potential impact on Starbucks’ ability to execute its growth strategy, we believe it is only a matter of time until the share price reflects the cost of this failed oversight. This threat to shareholder value is why action must be taken now.

Our nominees are:

• Maria Echaveste, a former senior White House official and corporate attorney with significant international relations and public company board experience.
• Hon. Joshua Gotbaum, who has been a director of both public and private companies with decades of experience in corporate governance and change, as well as significant public policy and government experience.
• Wilma Liebman, who possesses over 40 years of experience in labor management, employee relations, wage negotiations, public policy and law – including having served as the Chair of the NLRB under President Barack Obama.

By electing these nominees, shareholders will be adding to the Board independent, objective directors with the right skills and experience to help the Company address its significant human capital issues and chart a sustainable path forward.

We look forward to engaging with our fellow shareholders in the near-term.”

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