Former Starbucks CEO Howard Schultz departing Seattle for Miami

Howard Schultz Exits Seattle for Miami

Former Starbucks owner and CEO Howard Schultz has announced that he is leaving Seattle after 44 years in Washington state, largely due to the state’s Democratic Party advancing discussions on a “millionaire tax.”

Schultz has purchased a penthouse, costing about $44 million, in the Surf Club at Four Seasons Private Residences in Surfside, Florida. Reports indicate that he intends to settle in a more favorable tax landscape.

This decision comes amid legislative actions in Washington. A bill is set to impose a 9.9% tax on household income exceeding $1 million starting in 2029 and is expected to be introduced in the state Senate this week after passing the House.

Interestingly, Schultz had once contemplated a presidential run as an independent candidate. In his LinkedIn announcement about the move, he didn’t specifically address the tax situation, but seemed to reflect on the broader business climate.

“We want Washington to continue to be a place where business and entrepreneurship thrive, creating vital opportunities for the people of Seattle and the surrounding region,” he mentioned.

Schultz joins a trend of wealthy individuals relocating to sunnier states to escape high taxes. This group includes notable figures like Google co-founder Larry Page and Facebook founder Mark Zuckerberg, both of whom left California before a referendum regarding a “billionaire tax.”

With an estimated net worth of around $3.5 billion, Schultz is recognized for transforming Starbucks from a small coffee shop into a global powerhouse. He acquired the brand in 1987 and took it public just a few years later.

In his message, he referred to entering the “retirement” phase of his life with his wife, Sheri. “We enjoy the South Florida sunshine and its appeal to our children who are raising families on the East Coast,” he shared.

The Schultz family has deep roots in Seattle, but their private family office will now operate from Miami. However, their philanthropic foundation will retain its base in Seattle. Schultz reflected on the amazing growth of Seattle and expressed a commitment to helping those facing hardship in the city.

The Schultz Family Foundation is dedicated to providing support for young people, especially those without a four-year degree, in pursuing educational and job opportunities.

As Schultz transitions out of his role at Starbucks, he will step down as CEO and director in 2023, passing leadership to Laxman Narasimhan, a former executive at PepsiCo. Brian Nicol currently leads Starbucks as CEO.