Investing.com -- The SOC Investment Group has filed a shareholder proposal asking Starbucks (NASDAQ: SBUX) to separate its board chair and chief executive positions, both currently held by Brian Niccol.

The firm cited a "notable backslide in corporate governance and labor relations."

"Governance practices and responsiveness to shareholders have deteriorated since Starbucks combined the roles of CEO and Board Chair with the hiring of Brian Niccol," said Emma Bayes, deputy director of SOC Investment Group. "Separating the Board Chair and CEO roles would be a win-win, improving both accountability and Board oversight."

In the proposal, the investors argued that an independent chair provides critical checks and balances and allows a focus on shareholder interests.

They also believe the change would bring Starbucks into line with most large U.S. companies, pointing to data showing 60% of S&P 500 boards have separate chairs and chief executives.

Furthermore, the filing highlights the dissolution of the Environmental, Partner, and Community Impact Committee, a standing committee established under the former independent chair to promote accountability on environment, partner and community commitments.

It was disbanded less than two years later under Niccol.

Matthew Illian, director of responsible investing at United Church Funds, said separating the roles would not resolve the group's concerns alone "but it is a sensible safeguard," adding that "the person leading the Board should not also be the executive the Board is charged with overseeing."

The investors also pointed to the breakdown in union negotiations, November 2025's barista strike and the union's April 2026 accusation that the company was bargaining in bad faith.