Market Analysis

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Starbucks announced on Thursday that Mellody Hobson, the lead independent director of its board, will step down after nearly two decades with the company. Hobson previously served as the chairwoman of Starbucks from March 2021 to September 2024, making history as the only African American woman to chair a Fortune 500 company at the time of her appointment. 

In a letter dated January 14, Hobson expressed her continued commitment to the company, stating, "In two decades, I have never sold a single Starbucks share and plan to remain a steadfast investor." She informed the company earlier this week of her decision not to seek re-election at the upcoming annual shareholders' meeting, as disclosed in a company filing.

Hobson’s departure coincides with a broader trend of Corporate America scaling back diversity, equity, and inclusion (DEI) initiatives aimed at improving racial and ethnic representation in the workplace. In March, Starbucks shareholders voted to remove a DEI-related bonus from the company’s executive compensation plan.

Starbucks is also undergoing a major restructuring of its U.S. operations under CEO Brian Niccol, who is working to return the company to growth after a decline in demand for its premium drinks in the U.S. and China markets.

Since 2019, Hobson has been co-CEO and president of investment management firm Ariel Investments. She will remain in her current role at Starbucks for the remainder of her term. Starbucks is set to report its first-quarter results on January 28.

Paraphrasing text from "Reuters" all rights reserved by the original author.