8-KLeadership ChangesRegulation FDExhibits & Filings

STARBUCKS CORP 8-K Report, Executive Changes (Mar 4, 2025)

Filed March 4, 2025For Securities:SBUX

Summary

Starbucks Corporation (SBUX) announced a significant leadership change in its finance department, appointing Cathy R. Smith as its new Executive Vice President, Chief Financial Officer (CFO), Principal Financial Officer, and Principal Accounting Officer. This appointment is effective on a date to be determined. Ms. Smith brings a wealth of experience from her previous roles as CFO at Nordstrom, Bright Health Group, and Target Corporation, among others. This filing also confirms the departure of Rachel Ruggeri from her CFO position. The company has structured Ms. Smith's compensation package to attract her to Starbucks, including a substantial signing bonus and replacement equity grants to offset forfeited awards from her previous employer. Investors should monitor the transition and the strategic financial direction under Ms. Smith's leadership.

Key Highlights

  • 1Appointment of Cathy R. Smith as new CFO, Principal Financial Officer, and Principal Accounting Officer.
  • 2Ms. Smith has extensive experience as CFO at major retail and healthcare companies, including Nordstrom and Target.
  • 3Rachel Ruggeri is departing from her roles as CFO, Principal Financial Officer, and Principal Accounting Officer.
  • 4Ms. Smith will receive a $5,000,000 signing bonus to compensate for forfeited awards.
  • 5A replacement equity grant of $6,400,000 and a FY2025 annual equity award of $4,500,000 are being provided to Ms. Smith.
  • 6Ms. Smith's compensation structure, including salary and incentive opportunities, is detailed.
  • 7Ms. Ruggeri's separation is being treated as 'without cause' under the company's severance plan.

Frequently Asked Questions

Cathy R. Smith has been appointed as the new Executive Vice President, Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer for Starbucks. Her effective date is to be determined.

Ms. Smith will receive an initial base salary of $925,000, a target annual cash incentive of 125% of her base salary, a $5,000,000 signing bonus (paid in two installments), a replacement equity grant valued at $6,400,000, and a fiscal year 2025 annual equity award valued at $4,500,000. Both equity awards consist of 60% performance-based and 40% time-based restricted stock units.

The signing bonus and equity grants are intended to compensate Ms. Smith for approximately $15 million in cash incentive and equity awards she is forfeiting from her previous employer, to induce her to join Starbucks, and to align with Starbucks' general compensation practices for executives.

Rachel Ruggeri will no longer serve as the Company's Executive Vice President, Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer, effective on a date to be determined. Her separation meets the conditions for 'without cause' under the Company's Executive Severance and Change in Control Plan.