Starbucks Hires Nordstrom CFO as Executive Overhaul Continues

Starbucks announced on Tuesday that Cathy Smith, the Chief Financial Officer of Nordstrom, will be joining the company as its new CFO, succeeding longtime veteran Rachel Ruggeri. This executive shift comes after Brian Niccol took over as CEO in September, with a focus on revitalizing the company's declining coffee sales.

Since Niccol took over, several key departures have occurred, including the North American CEO, North American president, chief supply officer, and the former board chair. At the same time, many executives with connections to Niccol from his leadership roles at Chipotle Mexican Grill and Yum Brands' Taco Bell have joined Starbucks.

At 61, Smith joins Starbucks following a two-year tenure at Nordstrom, also based in Seattle, which recently revealed a $6.25 billion deal to go private. Over her extensive career, Smith has held the CFO role at companies including Bright Health Group, Target, Express Scripts, Walmart International, GameStop, Centex, Kennametal, Textron, and Raytheon.
Niccol informed employees in a letter that Smith is set to begin next month.

Ruggeri has been Starbucks' CFO since 2021 and, apart from two short tenures at other companies, has been with the coffee giant since 2001.
"I'm personally grateful for the partnership we've had over the last 6 months since I joined Starbucks," Niccol said in the letter. "Thank you, Rachel, for all you have done for our business, our culture and our partners."

The company stated in a regulatory filing that her departure is voluntary. Niccol mentioned that Ruggeri will remain with the company to assist in Smith's transition into the role.