Starbucks Corporation (NASDAQ:SBUX) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02
On December 1, 2016, Starbucks Corporation (“Starbucks”) filed a Current Report on Form 8-K (the “Original 8-K) reporting that Kevin R. Johnson, currently president and chief operating officer, would become president and ceo, and that Howard Schultz, currently chairman and ceo, would become executive chairman, both such appointments to be effective April 3, 2017.
On March 21, 2017, the Board of Directors of Starbucks approved, based on the recommendation of the Compensation and Management Development Committee of the Starbucks Board of Directors, compensation for Messrs. Johnson and Schultz in their new roles. This filing is being made to amend the Original 8-K to include the following information regarding these new compensation arrangements: (a) annualized base salary for Mr. Johnson was increased to $1,300,000; (b) annualized base salary for Mr. Schultz was reduced to $1; (c) Mr. Johnson’s target under the Executive Management Bonus Plan was increased to 200% of his base salary; (d) Mr. Schultz’s target under the Executive Management Bonus Plan remained at $3,750,000 (which is equivalent to his prior bonus target of 250% applied to his prior annualized base salary of $1,500,000); (e) Mr. Johnson will be granted a promotional equity award of $800,000; and (f) Mr. Schultz will be granted an equity award of $750,000. The equity awards will be granted on April 17, 2017 and will consist of approximately 40% stock options and 60% performance-based restricted stock units (“PRSUs”). The stock options will vest in four equal increments of 25% on each of the first four anniversaries of November 21, 2016, subject to continued employment. The extent to which the PRSUs will vest is based on fiscal 2018 earnings per share and return on invested capital goals. To the extent such targets are met, the PRSUs will vest 50% on November 21, 2018 and 50% on November 21, 2019.
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About Starbucks Corporation (NASDAQ:SBUX)
Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company’s Americas, CAP, and EMEA segments include both company-operated and licensed stores. Its Channel Development segment includes roasted whole bean and ground coffees, Tazo teas, Starbucks- and Tazo-branded single-serve products, a range of ready-to-drink beverages, such as Frappuccino, Starbucks Doubleshot and Starbucks Refreshers beverages and other branded products sold across the world through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and the United States foodservice accounts. Starbucks Corporation (NASDAQ:SBUX) Recent Trading Information
Starbucks Corporation (NASDAQ:SBUX) closed its last trading session up +0.04 at 55.93 with 8,452,070 shares trading hands.