Howard Schultz, an American businessman is chairman emeritus of coffee chain Starbucks, having served as chairman & CEO of the company (1986- 2000, 2008- 2017). For a year until his retirement in June 2018, the billionaire figure was also executive chairman of Starbucks.
The 354th Richest Person In The USA as per Forbes in 2012, Schultz, aside from coffee business stake, enjoys massive million-dollars showers from venture capital firm Maveron; co-founded it alongside Dan Levitan.
Howard Schultz Is A Billionaire: Net Worth In 2020?
Even after leaving Starbucks in 2018, the New York-born businessman has a 3% equity stake in the company, which primarily is the key factor of his billion-dollar fortune.
As per Forbes, as of March 4, 2020, Howard has a net worth of $4 billion, which is 3.80% ($156 million down) of the prior trading day.
66-year-old Schultz is #145 among Forbes 400 2019 & ranks #67 in Billionaires 2019.
The CEO & Chairman of Starbucks, Howard Schultz reportedly made only $1 in salary but $30.1 million in total compensation (stocks & bonus) in 2019.
In 2016, his earnings from the company were $21.8 million.
Formerly, he had ownership of Seattle SuperSonics, a now-deceased team of National Basketball Association (NBA) until he sold it in 2006 for $350 million.
The former member of the board of directors of Square, Inc. (until 2013), Howard runs a consumer-only venture capital firm Maveron, co-founded in 1998 with Dan Levitan, a former investment banker.
Climbing Net Worth Chart Over The Years:
Starting his venture as a manager at Starbucks (left in 1985), Howard, later acquired the Starbucks in the late 80s & expanded the coffee business vigorously.
Within 2 decades, the coffee chain launched 3,501 total stores over 6 continents & recorded a revenue of $2 billion.
In 2019, Starbucks had annual revenue of $26.5 billion- an increase in comparison of the past 2 years: 2017 ($22.4 billion) & 2018 ($24.71 billion).
Indeed, such a progressive career has surrounded him with a pool of fortune & as per Forbes, the business magnate’s highest-ever net worth recorded at $4.7 billion in October 2019 (report of March 4, 2020).
Net Worth Year-By-Year:
- March 2015– $2 billion
- March 2016– $2.9 billion
- March 2017– $3 billion (saw downhill to $2.8 billion October)
- March 2018– $2.9 billion
- March 2019– $3.5 billion
- October 2019– $4.7 billion
Was Marking Director At Starbucks: How He Owned The Coffee Chain?
Having worked at Xerox Corporation as a salesman before promotion to sales executive, Howard later joined Hammarplast in 1979, a Swedish drip coffee maker manufacturer.
After visiting Starbucks (founded in 1971), Schultz began working as its Director of Marketing in 1982, but left in 1985, as the then-owners of Starbucks rejected his proposal of espresso.
Thereafter, Howard ventured in his own store Il Giornale, launched in 1986, with financial aid through Starbucks co-founders Gordon Bowker and Jerry Baldwin.
In 1988, the Starbucks owners offered Howard for the chain purchase & sold him for $3.8 million, while they would focus on Peet’s Coffee & Tea.
His store Il Giornale was later named Starbucks.
From 1986 to 2000, Howard served as the CEO and Chairman of Starbucks & would return as its CEO again from 2008 to 2017.
Did you know? To open his first store ‘II Giornale’, Howard was in need of $400,000, however, 242 banks rejected to loan him until Bowker & Baldwin (Starbucks co-founders) offered to help.
Led Starbucks As International Chain: IPO Offering & Billion Dollars Revenue
In June 1992,Starbucks offered its first IPO in the stock market & recorded a revenue of $73.5 million that year- straight jump in comparison of 1987 revenue of $1.3 million.
By 2005, within less than 2 decades of Howard’s ownership, the company already had $6.369 billion in revenue ($494 million net) & each share value was $11.7.
However, by 2008, Starbucks’ share price saw a downfall to $6.64 per share (half of $12.32 per share in 2007) as a result of poor management as well as 2008 Stock Market Crash.
Return As CEO Until 2017
In 2008, Howard Schultz returned as CEO of Starbucks after an 8-year hiatus, had left in 2000 initially.
Upon his return, the American businessman reportedly fired nearly all executives & shut down lagging stores as per Investopedia.
Thereafter, he charted a new course for the company & by the time, Howard stepped down as the CEO of Starbucks in April 2017 (succeeded by Kevin Johnson), the company shares already saw a hike again.
In 2017, the Starbucks’ each share valued at $55.75 while the revenue recorded $22.387 billion (net income was $2.885 billion).
From 2017 to June 2018, Schultz worked as the company’s executive chairman before retirement.
Reportedly, in 2019, Starbucks had 31,256 stores worldwide with the highest 13,352 stores in the USA only.
On March 3, 2020, the company’s market capitalization was $92.25 billion.
Did you know? Howard is also an author & has co-written 3 books: Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time (1997), Onward: How Starbucks Fought for Its Life Without Losing Its Soul (2011) and For Love of Country (2014).
Real Estate Ownership: Where Does Schultz Live?
Currently, Howard lives in Seattle, Washington with his wife Sheri Kersch in their Madison Park community house in Lake Washington, valued at $30 million.
Formerly, the duo lived in Viretta Park, where they built $1.4 million worth house but moved to a mile away to Madison Park after neighbors made numerous complaints of their driveway.
As per Forbes, in August 2015, Schultz bought an 8-bedroom home in Hawaii, at Four Seasons development in Hualalai resort area, for $25 million. The 1.8-acre vacation home was placed in January 2015 for $33 million.
In February 2017, the emeritus CEO Starbucks dropped $40 million for a glassy duplex penthouse at The Greenwich Lane development in West Village.
Reportedly, the 4-bedroom & 5 & half-bathroom property had an asking price of $45 million, which Howard acquired for $5 million less.
Interesting Fact: Former Starbucks CEO Howard Schultz owns a private jet, Gulfstream G650, which costs around $65 million.
Charity Works & Donations
Schultz along with his wife is the co-founder of Schultz Family Foundation, which supports 2 national initiatives: Onward Youth and Onward Veterans.
Through his foundation, in 2019, Howard pledged $7.5 million in a period of 2 years to Institute for Veterans and Military Families at Syracuse University. In March 2014, his foundation had committed $30 million to support the integration of military veterans into civilian life.
Shares 2 Children With Wife: Family Details & Background
Since 1982, Howard is in a marital relationship with wife Sheri Kersch. The duo shares 2 children together: son Jordan Schultz (born in 1986) & a daughter Addison.
As for a fact, both of his children are grown-ups.
Schultz’s son Jordan, a sportswriter for The Huffington Post married Breanna Hawes in 2011, while daughter Addison, a social work clinician exchanged vows with Tal Hirshberg in 2017.
When & Where Was Howard Born?
Howard D. Schultz was born on July 19, 1953, in Brooklyn, New York City, New York, the USA. His father Fred Schultz was an ex-US Army while mother Elaine was a homemaker.
He grew up in a Jewish family with his brother Michael & sister Ronnie. The Canarsie High School attendant enrolled at Northern Michigan University & graduated in 1975 with Bachelor’s Degree in Speech Communication.
Did you know? Howard announced to run in the 2020 United States presidential election as an independent candidate, however, he dropped the plan in September 2019, citing it would help in the re-election of Trump as the vote of democrats will be divided.