Summary
Starbucks Corporation (SBUX) has filed an 8-K report on October 9, 2018, announcing a significant leadership change within its finance department. Patrick J. Grismer has been appointed as the new Executive Vice President and Chief Financial Officer (CFO), effective November 30, 2018. Mr. Grismer brings extensive experience from previous CFO roles at Hyatt Hotels Corporation and Yum! Brands, Inc., as well as leadership positions at The Walt Disney Company. This appointment marks a transition as the current CFO, Scott Maw, is set to retire on the same date, though he will remain as a senior consultant until March 2019. The report details Mr. Grismer's compensation package, which includes a base salary of $845,000, an annual bonus target of 100% of base salary, a new hire equity award of $7.5 million in restricted stock units, and a $1.5 million new hire cash award. These awards are subject to specific vesting and repayment terms. The company has also disclosed that Mr. Grismer's appointment is not subject to any undisclosed arrangements, family relationships, or reportable transactions.
Key Highlights
- 1Appointment of Patrick J. Grismer as new Executive Vice President and Chief Financial Officer (CFO), effective November 30, 2018.
- 2Current CFO Scott Maw to retire on November 30, 2018, transitioning to a senior consultant role until March 31, 2019.
- 3Mr. Grismer's extensive financial leadership background includes prior CFO roles at Hyatt Hotels Corporation and Yum! Brands, Inc., and roles at The Walt Disney Company.
- 4Mr. Grismer's compensation package includes an annualized base salary of $845,000.
- 5Significant new hire equity award of $7,500,000 in time-vesting RSUs and a $1,500,000 new hire cash award.
- 6Equity award vests over three years (40% first year, 30% in subsequent years), subject to continued employment.
- 7Cash award payable after 30 days of employment, subject to a one-year repayment agreement.