8-KLeadership Changes

STARBUCKS CORP 8-K Report, Executive Changes (Jan 7, 2016)

Filed January 7, 2016For Securities:SBUX

Summary

Starbucks Corporation (SBUX) announced a change to its Board of Directors through an 8-K filing on January 7, 2016. The company increased its board size from 12 to 13 members with the election of Mary N. Dillon as a new director, effective January 4, 2016. Ms. Dillon's appointment also includes a position on the Compensation and Management Development Committee. Her compensation will follow the standard program for non-employee directors, including equity awards based on her tenure.

Key Highlights

  • 1Starbucks elected Mary N. Dillon as a new director, increasing the board size to 13 members.
  • 2Ms. Dillon was appointed to the Compensation and Management Development Committee.
  • 3Ms. Dillon will receive standard compensation for non-employee directors, including prorated equity awards for her first year.
  • 4Olden Lee will retire from the Board of Directors in 2016 upon reaching the director retirement age.
  • 5The board size will return to 12 directors after Mr. Lee's retirement.
  • 6There are no disclosed related-party transactions or arrangements with Ms. Dillon.

Frequently Asked Questions

Mary N. Dillon has been elected as a new director to the Starbucks Corporation Board. The filing does not provide specific details about her background or the strategic reasons for her appointment beyond her joining the Compensation and Management Development Committee.

Ms. Dillon will participate in Starbucks' standard compensation program for non-employee directors. This includes an annual compensation of $260,000, with a prorated portion in the form of equity awards for her first year based on her joining date.

The board size was temporarily increased from 12 to 13 directors to accommodate Ms. Dillon's appointment. This increase is temporary, as Olden Lee is scheduled to retire in 2016, which will reduce the board size back to 12 members.

No, the filing explicitly states that there are no arrangements or understandings for her election and no related party transactions that require disclosure under Item 404(a) of Regulation S-K.