By Ilan Brat and Josh Beckerman
Starbucks Corp.'s Chief Operating Officer Troy Alstead will take
an indefinite leave of absence, the company said on Thursday, a
year after he was promoted to be the coffee chain's second in
command.
Mr. Alstead, 51 years old, will have his last day in his current
role on March 1, the company said. Starbucks didn't provide a
reason for the move, or say when Mr. Alstead's leave of absence
would end.
A spokesman said that all Starbucks employees become eligible
for a yearlong leave after 10 years with the company, and that Mr.
Alstead, who joined the company 23 years ago, first requested
taking an extended period off in 2008. But Starbucks at the time
was reeling from a steep slump in its profits and the decision to
close hundreds of stores, and Chairman Howard Schultz persuaded Mr.
Alstead to stay. Mr. Alstead recently requested again to take the
leave, the spokesman said.
Messrs. Alstead and Schultz will provide more detail about
transition plans later this month, the company said.
In January 2014, Starbucks said Mr. Schultz would expand his
role in product innovation and digital retailing as part of a
shuffling of senior executives aimed largely at adjusting to
technology-driven shifts in the industry. Mr. Alstead, then the
chief financial officer, was named chief operating officer and
placed in charge of day-to-day operations.
In the fiscal year ending in September 2013, Mr. Alstead earned
the company's second-highest salary after Mr. Schultz and received
more than $3 million in total compensation including bonuses, stock
options and other perks. Starbucks hasn't yet filed its proxy for
the latest fiscal year.
Just over a month ago, the Seattle-based company detailed a
five-year plan that includes doubling sales from its food business
and becoming more of an evening food-and-wine destination.
Starbucks's other growth plans include new store formats like
"express" locations and mobile-payment initiatives that will
provide faster service.
Starbucks shares fell 1.5% to $81.27 in after-hours trading
following the announcement, largely erasing a 1.6% rise in 4 p.m.
trading on the Nasdaq Stock Market.
"Troy is a beloved Starbucks partner and has played an
invaluable role in our growth as an enterprise and in the
development of our culture as a performance driven company balanced
with a humanity unique for our industry," Mr. Schultz said in a
statement announcing the leave. "Troy's humanity and humility will
be missed and we wish him the best."
Write to Ilan Brat at ilan.brat@wsj.com and Josh Beckerman at
josh.beckerman@wsj.com
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