8-KLeadership ChangesExhibits & Filings

STARBUCKS CORP 8-K Report, Executive Changes (May 2, 2012)

Filed May 2, 2012For Securities:SBUX

Summary

Starbucks Corporation (SBUX) announced a change to its Board of Directors in an 8-K filing dated May 2, 2012. The company's Board was expanded from 11 to 12 members with the election of Robert M. Gates. Mr. Gates, a notable figure, has also been appointed to the Nominating and Corporate Governance Committee. This appointment signifies a strengthening of the Board's oversight capabilities. Investors should note that Mr. Gates will be compensated according to the standard non-employee director plan, which includes annual compensation of $240,000, with flexibility in its composition (cash, stock options, or restricted stock units). His initial equity grant will vest on November 14, 2012. The filing confirms no related party transactions or prior arrangements influencing his election, ensuring a standard directorship.

Key Highlights

  • 1Starbucks Corporation expanded its Board of Directors from 11 to 12 members.
  • 2Robert M. Gates was elected as a new director to the Board.
  • 3Mr. Gates has been appointed to the Nominating and Corporate Governance Committee.
  • 4Non-employee directors, including Mr. Gates, receive an annual compensation of $240,000.
  • 5Director compensation can be a combination of cash, stock options, and/or restricted stock units (RSUs).
  • 6Mr. Gates' initial equity grant will vest on November 14, 2012.
  • 7The filing confirms no related party transactions or specific arrangements for Mr. Gates' election.

Frequently Asked Questions

Robert M. Gates is a former United States Secretary of Defense and has held other significant government and academic positions. His appointment to the Starbucks Board of Directors likely signals a focus on corporate governance and potentially international strategy, given his extensive experience in national security and public service. His inclusion may be seen as a move to enhance the board's expertise and public profile.

Mr. Gates will receive compensation consistent with Starbucks' standard plan for non-employee directors. This includes an annual compensation of $240,000, which he can elect to receive as a combination of cash (up to 50%), stock options, and/or time-based restricted stock units (RSUs).

The expansion of the Board of Directors from 11 to 12 members, coupled with the addition of a director like Mr. Gates, could suggest a need for increased oversight, specialized expertise, or a strategic decision to broaden the board's perspective. It may also be a proactive measure to ensure adequate representation and governance as the company continues to grow and evolve.

The filing explicitly states that there are no arrangements or understandings that influenced Mr. Gates' election and no related party transactions requiring disclosure. This indicates his appointment is based on his qualifications and aligns with the standard practices for director appointments and compensation.