One Starbucks Star Moves On

The Motley Fool

By Alyce Lomax (TMF Lomax)
October 13, 2004

Come March, is there going to be less glimmer in the Starbucks (Nasdaq: SBUX) galaxy? Well, yes -- the news broke last night. The company's president and CEO, Orin Smith, will retire at that time after having served nearly 15 years, five of which he spent as CEO. Should investors worry?

We all know that any change in management in any publicly traded company can cause some anxiety for investors. Compound this with the fact that top management at Starbucks has a pretty hefty amount of star power. (I hate to think what investors would think of a resignation of Chairman and chief visionary Howard Schultz -- that might cause a little panic in the Street.) Most of us are less acquainted with the designated new CEO, Jim Donald.

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