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On the morning of its annual assembly earlier this month, Starbucks made a shocking announcement. After a five-year break, the espresso chain’s founder Howard Schultz will return as CEO in April, filling the place for the third time.

Schultz’s first stint as CEO lasted from 1987 to 2000. He left for eight years, then got here again in 2008 to assist bail the corporate out throughout the monetary disaster. He served within the position for practically one other decade earlier than handing the reins to Kevin Johnson.

Now Johnson is leaving, and Schultz is again as interim CEO to run the corporate and assist discover a everlasting alternative, which the corporate expects to do by the autumn. Schultz can be rejoining Starbucks’ board of administrators.

The transfer is a head scratcher.

Johnson instructed the board a few 12 months in the past that he was contemplating retiring from the publish “as the worldwide pandemic neared an finish,” so his exit doesn’t come as a shock. Certainly, the board engaged government search agency Russell Reynolds Associates to assist search for a brand new CEO final 12 months, in keeping with the corporate.

Schultz himself mentioned “I didn’t plan to return to Starbucks,” in a press release discussing the transfer. However, he added, “whenever you love one thing, you may have a deep sense of accountability to assist when known as.” Schultz couldn’t instantly be reached for remark for this story.

Bringing Schultz again has definitely paid off previously. This time, Starbucks could also be hoping that its founder will assist quell a rising unionization drive amongst employees. However specialists warn the tactic might backfire.

“Howard Schultz is a famous person CEO and founder,” mentioned Sydney Finkelstein, a administration professor at Dartmouth Faculty’s Tuck enterprise college, who additionally consults on senior government hiring.

“His monitor file is large. However this shouldn’t be occurring.”

Sometimes, as soon as a company board learns that its chief government is eyeing an exit, administrators look internally and externally for a becoming alternative, mentioned Charles Elson, founding director of the Weinberg Middle for Company Governance on the College of Delaware. An inside candidate is preferable, he famous, as a result of it’s inexpensive and fewer disruptive. Tapping a former CEO for a second run — not to mention a 3rd — just isn’t within the playbook.

“You’d assume an organization of that dimension would have a broader bench,” Elson mentioned. “To usher in a twice-retired chair — it’s not the way in which you need it to finish up.”

Elson sees it this manner: The truth that Schultz left the job, twice, means there are good causes for him to not be within the position. Why deliver again somebody who has already determined to depart?

Tapping Schultz suggests to Elson that the corporate doesn’t consider it has the best expertise internally or, if it does, that particular person just isn’t but prepared for the highest job.

Many anticipated Rosalind Brewer, former chief working officer at Starbucks

(SBUX), to step in after Johnson. However Brewer left to change into CEO of Walgreens

(WBA) final 12 months. That might have thrown a wrench within the firm’s succession plans.

Starbucks declined to remark for this story, however pointed to statements made throughout the shareholder assembly in March.

“Succession is at all times on the prime of any board’s agenda and the board has been working to advance our planning,” mentioned board chair Mellody Hobson on the time. “The method is ongoing and yielding a powerful slate of potential candidates,” she added. “As we take the time wanted to pick out the best future chief, the board has requested Starbucks founder Howard Schultz to return as interim CEO.”

The pandemic might have slowed down the manager search, mentioned Sara Senatore, restaurant analyst at Financial institution of America. Plus, Starbucks might even see Schultz as having the best skillset to tackle its challenges, she added. That features convincing staff to not unionize.

Unionization efforts at Starbucks places throughout the nation threaten the corporate’s picture as a spot the place administration and staff, who’re known as “companions,” are on the identical crew. Roughly half a dozen Starbucks places have voted to unionize to date, with a number of others contemplating doing the identical.

As CEO, Schultz was hailed for the worker advantages he arrange, together with healthcare protection and tuition reimbursement for part-time employees. Starbucks nonetheless factors to those as parts that set it aside from the competitors and make the espresso chain an amazing place to work.

Schultz has been in a position to encourage emotions of camaraderie inside Starbucks previously, Senatore mentioned.

“The factor that he’s at all times been identified for is tradition, and his skill to speak … and to attach with companions,” she mentioned. “To some extent, because the founder, he’s nearly uniquely suited to try this.”

Even earlier than Starbucks introduced that Schultz would rejoin as interim CEO, he was a part of the corporate’s efforts to steer employees to not unionize. In November, he spoke on to Buffalo-area staff in regards to the firm’s deserves. He additionally penned a letter posted to the corporate’s web site touting the significance of a “direct and shared relationship” with employees.

Hobson echoed that sentiment throughout the shareholder assembly, saying “we actually consider the corporate has and may proceed to ship much more in direct partnership with our folks.” She added that “we hear the suggestions and we’re dedicated to discovering new methods to boost and elevate what we name the associate expertise.”

However Schultz might not be capable to persuade employees to stay to the established order.

Partially that’s as a result of the panorama has shifted. Extra corporations are elevating wages and bettering advantages to entice employees within the present, traditionally tight labor market, making Starbucks’ choices much less distinctive.

Starbucks has “been a frontrunner on advantages and making a aggressive package deal,” mentioned RJ Hottovy, head of analytical analysis at Placer.ai, who has tracked the restaurant business for years. However “there’s lots of corporations which have narrowed the hole, significantly throughout Covid.”

Plus the motion to unionize is larger than Starbucks, famous Tuck’s Finkelstein.

“It’s not a company-by-company factor,” he mentioned. “It’s not solely directed at Starbucks … it’s influenced by adjustments in how society appears at issues.” Youthful staff specifically are excited about organizing. Some misplaced their jobs within the pandemic or have been handled poorly by agitated prospects, and are longing for extra safety at work.

Even when Schultz does handle to enhance spirits at Starbucks whereas he’s there, his presence might ship a adverse message to potential hires sooner or later, Finkelstein mentioned.

“​​For those who’re a candidate for this job, one factor that’s going to be at the back of your head is, ‘the board goes to name Howard if one thing goes improper.’”

That’s not an amazing feeling. And somebody who’s being thought-about to be the CEO of Starbucks would absolutely produce other choices — together with at corporations the place the founder isn’t more likely to take over at any second, he famous.

The most effective CEO candidates “assume actually laborious about what affect they’ll have over the board, and their skill to craft their very own path for the technique of the corporate [and] the route of the corporate,” Finkelstein mentioned.

The choice might have a chilling impact down the company ladder as properly. Others contemplating whether or not to take government roles on the firm might see this as a deterrent, as a result of they might hope to someday fill the CEO seat themselves.

“Howard Schultz coming again because the Savior once more wouldn’t shock anybody if it occurred,” Finkelstein mentioned.