Summary
Starbucks Corporation (SBUX) filed an 8-K on March 27, 2023, to announce an amendment to its Executive Severance and Change in Control Plan. The key change is the inclusion of the company's Chief Executive Officer (CEO) into the plan, with specific severance benefit multiples. This amendment is effective as of March 22, 2023. The updated plan provides that if the CEO's employment is terminated by the company without cause, the CEO will receive two times their annual base salary plus target annual cash bonus. In the event of a termination without cause or resignation for good reason within a specified period around a change in control, the severance multiple increases to 2.99 times the sum of base salary and target bonus. This filing clarifies the compensation structure for the CEO in certain termination scenarios, particularly those involving a change in control.
Key Highlights
- 1Starbucks amended its Executive Severance and Change in Control Plan (Amended Severance and CIC Plan) on March 22, 2023.
- 2The CEO of Starbucks has been added as a participant to the Amended Severance and CIC Plan.
- 3The plan provides severance benefits to the CEO upon termination without cause.
- 4In case of termination without cause, the CEO is entitled to 2 times their annual base salary plus target annual cash bonus.
- 5If termination occurs without cause or resignation for good reason within a period surrounding a change in control, the CEO receives 2.99 times their annual base salary plus target annual cash bonus.
- 6The terms of the plan remain largely unchanged, with the primary modification being the CEO's inclusion and updated benefit multiples.