8-KLeadership ChangesShareholder Matters

STARBUCKS CORP 8-K Report, Executive Changes (Mar 26, 2012)

Filed March 26, 2012For Securities:SBUX

Summary

This 8-K filing from Starbucks Corporation, filed on March 26, 2012, reports on key outcomes from its Annual Meeting of Shareholders held on March 21, 2012. The most significant event for investors is the shareholder approval of an amended and restated Executive Management Bonus Plan. Key changes to the plan include an expansion of performance metrics, a substantial increase in the maximum potential payout per participant to $10 million, and the application of Starbucks' compensation recovery policy to certain awards. Additionally, the filing details the voting results for various proposals, including the election of 11 directors, an advisory vote on executive compensation, the ratification of Deloitte & Touche LLP as the independent auditor, and a shareholder proposal regarding a sustainability committee. The strong shareholder support for the re-elected directors and the auditor ratification indicate continued confidence in the company's leadership and financial oversight.

Key Highlights

  • 1Shareholders approved an amendment and restatement of the Starbucks Corporation Executive Management Bonus Plan.
  • 2The maximum potential annual payout for participants under the bonus plan was increased from $3,500,000 to $10,000,000.
  • 3Certain awards under the updated bonus plan will be subject to Starbucks' compensation recovery policy.
  • 4All 11 nominated directors were elected to serve until the 2013 Annual Meeting of Shareholders.
  • 5An advisory resolution on executive compensation was approved by shareholders.
  • 6Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending September 30, 2012.
  • 7A shareholder proposal regarding a Board committee on sustainability received significant opposition.

Frequently Asked Questions

The Executive Management Bonus Plan was amended to expand the list of performance measures, increase the maximum potential annual payout per participant from $3.5 million to $10 million, and subject certain awards to the company's compensation recovery policy. These changes were subject to shareholder approval.

Shareholders voted overwhelmingly in favor of electing all 11 nominated directors to serve until the 2013 Annual Meeting. For example, Howard Schultz received over 547 million votes 'for' his election.

The advisory resolution on executive compensation was approved by shareholders, indicating general support for the company's approach to compensating its executives.

No, the shareholder proposal regarding a Board committee on sustainability did not receive majority support. It received significantly more votes 'against' than 'for'.