Starbucks Executive Chairman Howard Schultz steps down

SEATTLE - Starbucks Corp Executive Chairman Howard Schultz is stepping away from the coffee chain he built into a global powerhouse, putting management firmly into the hands of Chief Executive Kevin Johnson, who had an office connected to the co-founder’s and regularly turned to Schultz in times of crisis.

Schultz's 40 years with the company, marked by his proving that people will pay up for coffee and making Frappuccino a household word, will end June 26. His honorary title will be chairman emeritus, according to Starbucks.

The announcement comes less than two months after Starbucks suffered a major PR nightmare stemming from the arrest of two African-American men in Philadelphia. The company apologized repeatedly and reached a financial settlement with them. Both Schultz and Johnson met with the men, and 180,000 employees could undergo racial-bias training.