Starbucks appoints Nordstrom CFO Cathy Smith as new finance chief

NORTH AMERICA – Starbucks has hired Cathy Smith, formerly Nordstrom’s chief financial officer and treasurer, as its new CFO, replacing Rachel Ruggeri, who has held the position since early 2021, according to a Securities and Exchange Commission filing.

In recent executive developments at Starbucks, changes have continued to reshape the company’s leadership and operational structure under CEO Brian Niccol’s tenure, which began in September.

Niccol announced that Ruggeri, a veteran with 20 years at Starbucks, would assist with the transition, although he did not specify her departure date.

Ruggeri’s exit is the latest in a series of high-level changes occurring during the first six months of Niccol’s leadership, a period marked by significant shifts in the C-suite.

According to reports, Niccol’s restructuring strategy has encompassed three main areas. The first involves fundamental changes to the company’s structure and operations.

Shortly after Niccol assumed leadership, the North America CEO, Michael Conway, retired and his role was eliminated.

In a bid to boost efficiency by removing redundant managerial layers, Starbucks terminated 1,100 corporate positions in late February.

Additionally, operational adjustments extend to store-level changes, including the removal of roughly 30% of the menu and a rebranding effort that has shifted the chain towards a coffeehouse identity, a marked departure from the previously product-heavy approach under former CEOs Laxman Narasimhan and Howard Schultz.

The second area of change has been the hiring of executives with prior working relationships with Niccol.

In October, Tressie Lieberman—previously a colleague at Chipotle, was appointed chief brand officer, and in January, two former Taco Bell executives were recruited to fill roles as executive vice president and president of North America, as well as chief of customer solutions and supply chain.

Niccol later suggested that the company might attempt to double its U.S. store count.

The third category involves bringing in C-suite leaders from outside the restaurant industry. In November, a new chief sustainability officer was hired from Mars, and most recently, the CFO post was offered to a candidate named Smith on February 27.

Smith, who had served as CFO at Nordstrom during a pivotal US$6.25 billion deal, joins after approximately two years at Nordstrom, having also held senior roles at Bright Health Group, Target, and Walmart International.

Her compensation package includes a US$925,000 annual salary, a US$5 million signing bonus, and over US$10 million in equity to offset forfeited payments from her previous role.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.