Finance
Starbucks' investor group urges shareholders to replace directors over labor row
Published by Global Banking & Finance Review®
Posted on February 19, 2026
2 min readLast updated: February 19, 2026
Tags:corporate governance
Quick Summary
Investor coalition asks Starbucks shareholders to oppose two directors over labor oversight, following historic barista strikes and the board’s EPCI committee dissolution ahead of the March 25 meeting.
Investors press Starbucks holders to oust two directors amid labor clash
Feb 18 (Reuters) - Starbucks faced fresh pressure on Wednesday from a coalition of investors including public-sector pension funds that urged shareholders to vote against the reelection of two directors, citing persistent failure to manage labor relations.
The move against Starbucks' lead independent director, Jorgen Vig Knudstorp, and Beth Ford, chair of the board's Nominating and Corporate Governance Committee, comes as the company is locked in a prolonged effort to reach a collective agreement with its unionized baristas.
More than 3,800 baristas had joined a nationwide strike late last year - marking the longest work stoppage in its history - as the Starbucks Workers United union pressed for better staffing, more predictable schedules and higher pay after drawn-out contract talks.
The dispute has become a high-profile test for CEO Brian Niccol as he works to revive sales.
"We are concerned that, without a constructive relationship between Starbucks and its unionized workforce, sustaining the turnaround may prove difficult," the investors said in a letter ahead of the March 25 annual meeting.
New York State Comptroller Thomas DiNapoli, New York City Comptroller Mark Levine, Trillium ESG Global Equity Mutual Fund, SOC Investment Group, Merseyside Pension Fund and the Shareholder Association for Research and Education are all signatories.
"We offer the best job in retail with hourly partners earning an average of $30 an hour and world-class benefits... all for those who only work 20 hours a week on average," Starbucks said in a statement.
The investor group had, in January, written to the two directors raising concerns over the board's elimination of its Environmental, Partner, and Community Impact Committee without explanation.
The committee's responsibilities were reallocated across existing committees and the full board reclaimed primary responsibility for labor oversight, Starbucks told Reuters on Wednesday.
(Reporting by Neil J Kanatt and Juveria Tabassum in Bengaluru; Editing by Pooja Desai)
Key Takeaways
- •A coalition of investors urges shareholders to vote against two Starbucks directors over labor oversight concerns.
- •Targets are lead independent director Jørgen Vig Knudstorp and Nominating & Corporate Governance chair Beth Ford.
- •The push follows prolonged union disputes and a nationwide strike involving more than 3,800 baristas late last year.
- •Investors cite the board’s elimination of the Environmental, Partner, and Community Impact Committee as a red flag.
- •Starbucks says it offers average $30/hour pay and strong benefits, and reallocated labor oversight to the full board.
Frequently Asked Questions about Starbucks' investor group urges shareholders to replace directors over labor row
1What is the main topic?
A coalition of investors is urging Starbucks shareholders to vote against the reelection of two board directors due to concerns over the company’s handling of labor relations.
2Which directors are being targeted and why?
Jørgen Vig Knudstorp and Beth Ford. Investors cite persistent labor oversight failures and the board’s dissolution of the EPCI committee as key reasons.
3When is the shareholder vote?
The vote will take place at Starbucks’ annual meeting on March 25, 2026.
