SBUX » Topics » Change-in-Control and Termination Arrangements

This excerpt taken from the SBUX DEF 14A filed Jan 22, 2009.
Change-in-Control and Termination Arrangements
 
We do not provide special change-in-control benefits to executives. Our only change-in-control arrangement, which applies to all partners with equity compensation awards, is accelerated vesting of equity. We do, however, occasionally offer a severance benefit arrangement for new executive officers to provide for one year’s base salary if we terminate his or her employment for any reason other than “cause” (which generally requires misconduct) within one year of the executive’s hire date. We may also offer a severance benefit arrangement for terminated or separated executives as part of a negotiated termination of employment in exchange for a release of claims against the Company and other covenants in the best interests of the Company. Other than as described below, none of our named executive officers for fiscal 2008 has any such severance benefit arrangement.
 
On January 22, 2008, in connection with Mr. Donald’s separation, the Company entered into a Separation Agreement and Release with Mr. Donald. Pursuant to the agreement, we agreed to pay Mr. Donald a severance amount equal to $1,250,000. The Compensation Committee believes that the separation amount was appropriate and in the best interests of the Company in exchange for certain covenants provided by Mr. Donald. A detailed description of the agreement can be found on page 48. The amount paid in fiscal 2008 is noted in the Fiscal 2008 All Other Compensation Table on page 41.
 
Mr. Bocian resigned from the Company effective November 25, 2008. He did not receive compensation in connection with his resignation.
 
This excerpt taken from the SBUX DEF 14A filed Jan 23, 2008.
Change-in-Control and Termination Arrangements
 
We do not provide special change-in-control benefits to executives. Our only change-in-control arrangement, which applies to all partners, is accelerated vesting of stock options. We do, however, generally offer a severance benefit arrangement for new senior executives to provide for one year’s base salary if we terminate his or her employment for any reason other than “cause” (which generally requires misconduct) within one year of the executive’s hire date. None of our named executive officers for fiscal 2007 has any such severance benefit arrangement currently.
 
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