Howard Schultz Net Worth
Howard Schultz has an estimated net worth of $3.9 billion. He is the former CEO and chairman of Starbucks, the highly successful coffee company. He earned the majority of his income from Starbucks.
Howard Schultz was born on July 19, 1953, in Brooklyn, New York, and graduated from Northern Michigan University with a bachelor’s degree in communications before joining the Starbucks Coffee Company as director of retail operations and marketing in 1982. He bought Starbucks and became CEO and chairman after founding the coffee company Il Giornale in 1987. Schultz publicly announced his resignation as CEO of Starbucks in 2000, but he returned to lead the company from 2008 to 2018. He then declared his intention to run for president as an independent as early as 2020, before withdrawing his candidacy in September 2019.
To calculate the net worth of Howard Schultz, subtract all his liabilities from his total assets. Investments, savings, cash deposits, and any equity he has in a house, car, or other similar asset are included in the total assets. All debts, such as loans and personal debt, are included in total liabilities.
Here’s the breakdown of his net worth:
|Net Worth:||$3.9 billion|
|Monthly Salary:||$20 Million+|
|Annual Income:||$300 Million+|
|Source of Wealth:||Entrepreneur, Television producer, Screenwriter|
Early Life and Career
Howard D. Schultz was born on July 19, 1953, in Brooklyn, New York, and moved with his family to the Bayview Housing projects in Canarsie, a southeastern Brooklyn neighborhood, when he was three years old. Schultz was a natural athlete who dominated the basketball courts near his house as well as the football field at school. In 1970, he escaped Canarsie with a football scholarship to Northern Michigan University.
Schultz found work as an appliance salesman for Hammarplast, a company that sold European coffee makers in the United States, after graduating from university with a Bachelor of Science degree in communication in 1975. In the early 1980s, as he rose through the ranks to become director of sales, Schultz noticed that he was selling more coffee makers to a small operation in Seattle, Washington, known at the time as the Starbucks Coffee Tea and Spice Company, than to Macy’s. “These numbers were going up every month, every quarter, even though Starbucks only had a few stores,” Schultz later recalled. “And I told her, ‘I’ve got to go up to Seattle.'”
Howard Schultz recalls walking into the original Starbucks in 1981 for the first time. Starbucks had only been in business for ten years and didn’t have a presence outside of Seattle. Starbucks was founded in 1971 by old college friends Jerry Baldwin and Gordon Bowker, as well as their neighbor Zev Siegl. The three friends also designed the coffee company’s iconic mermaid logo.
“I knew I was home when I walked into this store for the first time—I know this sounds really hokey,” Schultz later recalled. “I’m at a loss for words. But I knew I was in a special place, and the product kind of spoke to me.” He added at the time, “I’d never had a good cup of coffee before. I met the company’s founders and heard for the first time the story of great coffee… ‘God, this is something I’ve been looking for my entire professional life,’ I exclaimed.” Schultz had no idea how fortuitous his introduction to the company would be, or that he would play a key role in shaping the modern Starbucks.
Birth of the Modern Starbucks
Howard Schultz was hired as director of retail operations and marketing for the growing coffee company, which at the time only sold coffee beans, not coffee drinks, a year after meeting with Starbucks’ founders, in 1982. “At the time, my impression of Howard was that he was a fantastic communicator,” co-founder Zev Siegl later recalled. “He’s still one to one.”
Early on, Schultz set about making his mark on the company while also taking on the mission of Starbucks. He was struck by the number of coffee shops he encountered while traveling in Milan, Italy, in 1983. He then had an epiphany: Starbucks should sell coffee drinks as well as coffee beans. “I noticed something. Not only is there the romance of coffee, but there is also a sense of community. And the bond that people had with coffee—both the place and one another, “Schultz remembered. “And after a week in Italy, I was so convinced with such unbridled enthusiasm that I couldn’t wait to get back to Seattle to tell everyone about it.”
Schultz’s enthusiasm for opening coffee shops in Starbucks locations, on the other hand, was not shared by the company’s founders. “We were like, ‘Oh no, that’s not for us,'” Siegl recalled. “We served coffee in our store throughout the 1970s. We even had a nice, big espresso machine behind the counter at one point. However, we were in the bean business.” Nonetheless, Schultz persisted until the owners agreed to let him open a coffee shop in a new store opening in Seattle. It was an instant success, bringing in hundreds of people per day and introducing a whole new language to Seattle in 1984—the language of the coffeehouse.
However, the success of the coffee shop demonstrated to the original founders that they did not want to go in the direction Schultz desired. They didn’t want to grow up. Schultz left Starbucks in 1985 to start his own coffee bar chain, Il Giornale, which quickly became successful.
Schultz bought Starbucks two years later with the help of investors, combining Il Giornale with the Seattle company. He later became the CEO and Chairman of Starbucks (known thereafter as the Starbucks Coffee Company). Schultz had to persuade investors that Americans would pay a premium for a beverage that they were used to getting for 50 cents. Most Americans didn’t know the difference between a high-quality coffee bean and a teaspoon of Nescafé instant coffee at the time. In fact, coffee consumption has been declining in the United States since 1962.
Schultz publicly announced his resignation as CEO of Starbucks in 2000. However, he returned to lead the company eight years later. Schultz stated of Starbucks’ mission in a 2009 interview with CBS, “We’re not in the business of filling bellies; we’re in the business of filling souls.”
In 2006, Howard Schultz was ranked 359th on Forbes magazine’s “Forbes 400” list of the 400 wealthiest people in the United States. In 2013, he was ranked No. 311 on the same list, as well as No. 931 on Forbes’ global list of billionaires.
Starbucks now sells more coffee drinks to more people in more locations than any other company. By 2012, Starbucks had expanded to over 17,600 stores in 39 countries worldwide, with a market capitalization of $35.6 billion. Starbucks had over 21,000 stores worldwide and a market capitalization of $60 billion by 2014. According to reports, the incredibly popular coffee company opens two or three new stores every day and attracts approximately 60 million customers per week. Starbucks has been “committed to ethically sourcing and roasting the highest-quality arabica coffee in the world” since 1971, according to the company’s website.
Social Causes: Gay Marriage and Racial Sensitivity
Schultz made headlines and received widespread applause in March 2013 after making a statement in support of gay marriage legalization. After a shareholder complained that Starbucks had lost sales because of its support for gay marriage (the company had announced its support for a referendum in Washington to legalize gay union), Schultz responded, “Not every decision is an economic decision.” Despite the fact that you cite time-limited statistics, we did provide a 38 percent shareholder return over the last year. I’m not sure how many things you invest in, but I’m guessing not many. Companies, products, and investments have returned 38% in the last year.
“The lens through which we are making that decision is the lens of our people,” he added. “This company employs over 200,000 people, and we want to embrace diversity.” Every kind. It’s a free country if you believe you can earn a higher return than the 38 percent you received last year. You can sell your Starbucks stock and invest in another company.”
In April 2018, the company encountered another contentious issue when two African American men were arrested for trespassing at a Philadelphia location after meeting at the store but not ordering anything. Schultz then spearheaded a racial bias training program to help ensure that such an unfortunate incident never happened again.
Retirement and Presidential Speculation
Howard Schultz announced in early June 2018 that he would step down as chairman of Starbucks at the end of the month. At the time, the chain had expanded to over 28,000 stores in 77 countries.
The move fueled speculation that the successful businessman was considering running for president in 2020, and Schultz did little to dispel it. “I have been deeply concerned about our country for some time now — the growing division at home and our standing in the world,” he told The New York Times, adding that he was “a long way from making any decisions about the future.”
Schultz announced in January 2019 that he was planning to run for president as an independent, though he stated that he would first tour the country to promote his new book, From the Ground Up: A Journey to Reimagine America’s Promise, before deciding whether to formally enter the race.
Along with facing criticism for potentially diverting votes away from the eventual Democratic nominee, Schultz faced a setback when back pain necessitated a series of operations, forcing him to withdraw from the campaign trail. The businessman announced his withdrawal from the presidential race in September 2019.
“My belief in the need to reform our two-party system has not wavered, but I have concluded that running for President as an independent is not the best way for me to serve our country at this time,” Schultz wrote in a letter posted on his website.
Schultz and his wife, Sheri (Kersch) Schultz, have two children, Jordan and Addison. He lives in the Madison Park neighborhood of Seattle, Washington.
Success Lessons From Howard Schultz
1. Not everyone really wants to get BIG
Now this sounds funny, but it is as true as rain. Not everyone has the capacity to handle a really big company. Not everyone is willing to become really large. Some just want to maintain a small or medium sized business. It isn’t that these people don’t have ambitions, most times they believe the originality of what they are doing (be it a service or product) would be diluted by the massiveness of a large company.
The founders of Starbucks knew the potential of serving brewed coffee in their stores; Howard had conducted a successful pilot process of idea. But they just were not ready for that kind of success. The same can be seen in the Macdonald’s story.
If your dream is becoming really big, but you find yourself surrounded by people like Starbucks founders, then it would do you real good to excuse yourself from them. The fact that they are contented running 3 or 4 stores doesn’t mean you should be okay with it. Never let another man’s dream become your cage. You have a right to dream your dream and see it come to fulfillment.
2. Impossible is nothing; anything is possible
Howard once said, “I cannot offer you any specific secret recipe for success, the perfect plan, how to reach the pinnacle of success in the business. But my own experience suggests that starting from scratch and achieving much more than what I dream about is quite possible”.
Don’t let anything stop you.
Favorite Howard Schultz Quotes
“Dream more than others think practical. Expect more than others think possible. Care more than others think wise.”
“You’ve got to be truthful. I don’t think you should be vulnerable every day, but there are moments where you’ve got to share your soul and conscience with people and show them who you are, and not be afraid of it.”
“Risk more than others think safe.”
“Authentic brands don’t emerge from marketing cubicles or advertising agencies.”
“You can’t expect your employees to exceed the expectations of your customers if you don’t exceed your employee’s expectations of management.”
“You have to know who you are and who you are not.”
“When you’re surrounded by people who share a passionate commitment around a common purpose, anything is possible.”
“We built the Starbucks brand first with our people, not with consumers. Because we believed the best way to meet and exceed the expectations of our customers was to hire and train great people, we invested in employees.”
“If people believe they share values with a company, they will stay loyal to the brand.”
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