8-KLeadership ChangesRegulation FDExhibits & Filings

STARBUCKS CORP 8-K Report, Executive Changes (Sep 6, 2017)

Filed September 6, 2017For Securities:SBUX

Summary

Starbucks Corporation (SBUX) announced a significant executive appointment via an 8-K filing on September 6, 2017. Rosalind Brewer was appointed as Group President, Chief Operating Officer, effective October 2, 2017. Ms. Brewer, who joined the Starbucks board in March 2017, brings extensive retail leadership experience, most notably as the former President and CEO of Sam's Club, a division of Walmart. This appointment signals a strategic move to strengthen the company's operational leadership. The compensation package for Ms. Brewer reflects the importance of her role and includes a base salary of $1,000,000, a target annual bonus of 150% of her base salary, a new hire equity award valued at $7,000,000, and a new hire cash award of $1,000,000. The equity award is structured with a three-year vesting schedule, and the cash award will be paid out over two years, contingent on continued employment. This filing is primarily focused on this key personnel change.

Key Highlights

  • 1Starbucks appointed Rosalind Brewer as Group President, Chief Operating Officer, effective October 2, 2017.
  • 2Rosalind Brewer brings significant retail operational experience, having previously served as President and CEO of Sam's Club.
  • 3Ms. Brewer has been a member of the Starbucks Board of Directors since March 2017.
  • 4Her compensation package includes a $1,000,000 base salary and a target annual bonus of 150% of base salary.
  • 5Ms. Brewer will receive a new hire equity award of $7,000,000 (40% stock options, 60% RSUs) vesting over three years.
  • 6A new hire cash award of $1,000,000 is part of her compensation, payable over two years.
  • 7The appointment indicates a strategic enhancement of Starbucks' executive operational leadership.

Frequently Asked Questions

This 8-K filing primarily announces the appointment of Rosalind Brewer as Starbucks' Group President, Chief Operating Officer, and details her compensation package.

Rosalind Brewer has extensive experience in retail operations, most notably as the former President and CEO of Sam's Club. She also held various senior leadership positions at Walmart. Her prior experience makes her well-suited for the Chief Operating Officer role at Starbucks.

Ms. Brewer's compensation includes an annualized base salary of $1,000,000, a target annual bonus of 150% of her base salary, a $7,000,000 new hire equity award (stock options and RSUs) vesting over three years, and a $1,000,000 new hire cash award payable over two years, all contingent on continued employment.

Yes, Ms. Brewer joined the Starbucks Board of Directors in March 2017. She is stepping down from board committees to take on her new operational role as Group President, Chief Operating Officer, but will continue to serve on the board.