8-K/ALeadership Changes

STARBUCKS CORP 8-K/A Report, Executive Changes (Sep 7, 2017)

Filed September 7, 2017For Securities:SBUX

Summary

Starbucks Corporation (SBUX) has announced a significant leadership change with the appointment of Rosalind Brewer as Group President, Chief Operating Officer, effective October 2, 2017. Ms. Brewer, a current Starbucks board member since March 2017, brings extensive retail and operational experience from her previous roles, most notably as President and CEO of Sam's Club. This appointment signifies a strategic move to strengthen the company's operational leadership. Ms. Brewer's responsibilities will encompass the Americas operating businesses, supply chain, product innovation, and store development. This organizational adjustment also includes a realignment for John Culver, who will now lead International and Channels. The company has outlined a comprehensive compensation package for Ms. Brewer, including base salary, bonus targets, and substantial equity and cash awards designed to incentivize her performance and retention.

Key Highlights

  • 1Appointment of Rosalind Brewer as Group President, Chief Operating Officer, starting October 2, 2017.
  • 2Ms. Brewer brings significant retail operational expertise from her tenure as President and CEO of Sam's Club.
  • 3Ms. Brewer will oversee the Americas operating businesses, global supply chain, product innovation, and store development.
  • 4John Culver's role is adjusted to Group President, International and Channels.
  • 5Ms. Brewer's compensation includes a $1,000,000 base salary, 150% annual bonus target, $7,000,000 in equity awards, and $1,000,000 in cash awards.
  • 6Equity awards include stock options and RSUs, vesting over three years.
  • 7Cash awards will be paid out over 24 months, contingent on continued employment.

Frequently Asked Questions

Rosalind Brewer is the newly appointed Group President, Chief Operating Officer of Starbucks. She is 55 years old and has a strong background in retail operations, having previously served as President and Chief Executive Officer of Sam's Club from 2012 to 2017. She has also held various executive positions at Walmart and Kimberly-Clark Corporation. Ms. Brewer has been a member of the Starbucks board of directors since March 2017.

As Group President, Chief Operating Officer, Ms. Brewer will be responsible for leading Starbucks' operating businesses across the Americas (including Canada, the U.S., and Latin America). She will also oversee global functions such as supply chain, product innovation, and store development.

Ms. Brewer's compensation package includes an annualized base salary of $1,000,000, an annual bonus target of 150% of her base salary, a new hire equity award valued at $7,000,000 (comprising stock options and RSUs vesting over three years), and a new hire cash award of $1,000,000 (paid out over 24 months). All awards are subject to continued employment.

This appointment creates a new COO role focused on operational leadership and integration across key markets and functions. Concurrently, John Culver, the previous Group President of Global Retail, will transition to Group President, International and Channels, focusing on international markets and channel development. This suggests a strategic restructuring to better manage global growth and operational efficiency.