Monday, January 26, 2009

Starbucks CEO, Top Officials Didn't Get Bonuses for 2008

The Wall Street Journal - Starbucks Corp. Chief Executive Howard Schultz and several other top executives didn't earn bonuses this past fiscal year as sales and earnings growth slowed at the coffee giant.

Additionally, according to the company's annual proxy statement, filed Thursday, Mr. Schultz won't participate in Starbucks's executive management bonus plan for the current fiscal year, which will end Sept. 27. Instead, he is getting a long-term incentive grant in the form of stock options to "more closely align pay for performance," according to the proxy filing.

Starbucks CEO Howard Schultz

For the year that ended Sept. 28, 2008, Mr. Schultz's compensation package totaled $9.7 million, including his base salary, stock options and other items such as life and disability insurance. That was 8.5% lower than the previous year, when his compensation package totaled $10.6 million.

Five other current and former top executives also failed to earn bonuses for fiscal 2008 as a result of the company's financial performance. Mr. Schultz and the three officers in that group who remain at the company won't get increases in their base salary for fiscal 2009. It will be the fifth year in a row that Mr. Schultz's base salary has been flat.

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