A coalition of investors, led by public‑sector pension funds, has called on Starbucks shareholders to vote against the re‑election of lead independent director Jørgen Vig Knudstorp and chair of the nominating and corporate governance committee Beth Ford. The group cites a “sustained oversight failure of labor relations” as the basis for its demand, arguing that the board’s handling of union negotiations and labor disputes has exposed the company to reputational and legal risks.
The coalition is signed by the New York State Comptroller, New York City Comptroller, Trillium, SOC Investment Group, Merseyside Pension Fund, and the Shareholder Association for Research and Education. The signatories point to a series of labor‑related incidents, including the longest Starbucks strike in company history that involved more than 3,800 employees at the end of 2025, over 700 unresolved unfair‑labor‑practice charges as of November 2025, and a $38.9 million settlement with New York City for Fair Workweek violations that covered July 2021‑July 2024.
The campaign also targets the board’s decision to dissolve the Environmental, Partner, and Community Impact committee in November 2025. That committee had been tasked with overseeing labor matters, and its elimination has been described by investors as a backsliding on oversight. The coalition argues that the responsibilities for labor oversight were not adequately reassigned, leaving a governance gap that has allowed labor disputes to intensify and expose Starbucks to further legal and financial exposure.
Starbucks has responded by emphasizing its board’s expertise and the “Back to Starbucks” turnaround plan led by CEO Brian Niccol. The company maintains that it offers competitive pay and benefits, with an average hourly wage of $30 including benefits for part‑time partners, and that labor oversight responsibilities have been redistributed among existing board committees. However, the company has not yet addressed the specific concerns raised about the committee dissolution or the broader oversight failures cited by the investors.
The shareholder campaign represents a significant governance challenge. If the “vote no” motion succeeds, it could trigger a change in board leadership that may alter Starbucks’ approach to labor negotiations and potentially reduce future litigation and settlement costs. The outcome will also signal to investors how the board is perceived in terms of accountability and risk management, potentially influencing long‑term shareholder value and the company’s ability to execute its turnaround strategy.
The campaign underscores the growing pressure on Starbucks to strengthen labor governance. Investors are signaling that unresolved labor issues could undermine the company’s operational stability and brand reputation, which are critical to the success of the “Back to Starbucks” initiative. A shift in board leadership could lead to new oversight structures and a more proactive stance on labor relations, potentially mitigating future legal exposure and restoring investor confidence.
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