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Starbucks Appoints New CFO Amid Executive Shakeup

Starbucks announced on Tuesday that Cathy Smith, the chief financial officer of Nordstrom, will take over as the company’s new CFO, succeeding Rachel Ruggeri, who has held the position since 2021.

This leadership change marks a significant move for Starbucks following the appointment of Brian Niccol as CEO last September. Niccol’s initiative aims to revitalize the company’s coffee sales, which have faced challenges in recent quarters.

Under Niccol’s leadership, Starbucks has experienced a wave of executive turnover. Significant departures have included the North American CEO, the North American president, the chief supply officer, and the former chair of the board. Notably, many executives from Niccol’s prior roles at Chipotle Mexican Grill and Taco Bell are now joining Starbucks, signifying a strategic shift in the company’s leadership structure.

Cathy Smith, 61, brings a wealth of experience to her new role. She has spent the past two years at Nordstrom, which is also headquartered in Seattle and recently announced plans for a $6.25 billion acquisition to take the company private. Over her extensive career, Smith has held CFO positions at various prominent companies including Bright Health Group, Target, Express Scripts, Walmart International, GameStop, Centex, Kennametal, Textron, and Raytheon.

Smith is set to begin her role next month, as communicated in a letter to employees from Niccol.

Ruggeri’s departure is categorized as being without cause, as stated in a recent regulatory filing. She will remain with Starbucks for a transition period, assisting Smith as she steps into the position. Niccol expressed his gratitude for Ruggeri’s contributions, emphasizing the value of their collaboration over the past six months.

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