SBUX » Topics » Executive Compensation Program Objectives and Design

This excerpt taken from the SBUX DEF 14A filed Jan 22, 2010.
Executive Compensation Program Objectives and Design
 
Our executive compensation program is designed to achieve four key objectives:
 
  •  Attract and Retain Top Talent.  Attract and retain executives critical to our long-term success.
 
  •  Pay for Performance.  Align executive compensation with Company, business unit and individual performance on both a short-term and long-term basis.
 
  •  Place Majority of Pay in the Form of Variable Compensation.  Align executive compensation with shareholder interests by tying a significant majority of total direct compensation to the achievement of performance goals or stock price appreciation, which we refer to as variable compensation, and increasing the amount of pay that is variable compensation as we give executives greater levels of responsibility. Variable compensation means the executive will not realize value unless performance goals, the majority of which are directly tied to Company performance, are achieved (for annual incentive bonuses and performance RSUs) or our stock price appreciates (for stock options).
 
  •  Be True to Our Values.  Support our mission statement and guiding principles.
 
To achieve these objectives, we structured our executive compensation program to:
 
  •  Be competitive with compensation paid by companies in the same market for executive talent.
 
  •  Reward performance by linking compensation to (i) Company and, for some executives as appropriate, business unit performance and (ii) achievement of individual performance bonus goals.
 
  •  Drive long-term shareholder returns by delivering a majority of executive compensation in the form of equity compensation, the value of which is directly linked to our stock price.
 
  •  Align executive and shareholder interests by requiring executives to own our stock.
 
  •  Provide limited executive perquisites.
 
In this proxy statement, the term “executive officers” means our most senior executives, who are all listed under the heading “Executive Officers” in our 2009 10-K (available on our website at http://investor.starbucks.com). The term “named executive officers” means the four current executive officers named in the compensation tables that follow plus Martin Coles, our former president, Starbucks Coffee International, who left the Company effective December 1, 2009 and Peter J. Bocian, our former executive vice president, chief financial officer and chief administrative officer, who left the Company effective November 25, 2008. “Compensation Committee” or “Committee” means the Compensation and Management Development Committee of the board of directors.
 
This excerpt taken from the SBUX DEF 14A filed Jan 22, 2009.
Executive Compensation Program Objectives and Design
 
Our executive compensation program is designed to achieve four key objectives:
 
  •  Attract and Retain Top Talent.  Attract and retain executives critical to our long-term success.
 
  •  Pay for Performance.  Align executive compensation with Company, business unit and individual performance on both a short-term and long-term basis.
 
  •  Place Majority of Pay “At Risk.”   Align executive compensation with shareholder interests by placing a significant majority of total direct compensation “at risk,” and increasing the amount of pay that is “at risk” as we give executives greater levels of responsibility. “At risk” means the executive will not realize value unless performance goals, the majority of which are directly tied to Company performance, are achieved (for annual incentive bonuses and performance RSUs) or our stock price appreciates (for stock options).


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  •  Be True to Our Values.  Support our mission statement and guiding principles.
 
To achieve these objectives, we structured our executive compensation program to:
 
  •  Be competitive with compensation paid by companies in the same market for executive talent.
 
  •  Reward performance by linking compensation to (i) Company and, for some executives as appropriate, business unit performance, and (ii) achievement of individual performance bonus goals for executives other than the chairman, president and chief executive officer.
 
  •  Drive long-term shareholder returns by delivering a majority of executive compensation in the form of equity compensation, the value of which is directly linked to our stock price.
 
  •  Align executive and shareholder interests by requiring executives to own our stock.
 
  •  Provide limited executive perquisites.
 
In this proxy statement, the term “executive officers” means our most senior executives, who are all listed under the heading “Executive Officers” in our 2008 10-K (available on our web site at http://investor.starbucks.com). The term “named executive officers” means the four current executive officers named in the compensation tables that follow plus Peter J. Bocian, our former executive vice president, chief financial officer and chief administrative officer who left the Company effective November 25, 2008, and James L. Donald, our former president and chief executive officer who left the Company effective January 7, 2008. “Committee” or “Compensation Committee” means the Compensation and Management Development Committee of the board.
 
Executive Compensation Program Objectives and Design
 
Our executive compensation program is designed to achieve four key objectives:
 
  •  Attract and Retain Top Talent.  Attract and retain executives critical to our long-term success.
 
  •  Pay for Performance.  Align executive compensation with company, business unit and individual performance on both a short-term and long-term basis.
 
  •  Place Majority of Pay “At Risk”.  Align executive compensation with shareholder interests by placing a significant majority of total direct compensation “at risk”, and increasing the pay “at risk” as we give executives greater levels of responsibility. “At risk” means the executive will not realize value unless performance goals, the majority of which are directly tied to Company performance, are achieved (for bonuses) or our stock price appreciates (for stock options).
 
  •  Be True to Our Values.  Support our mission statement and guiding principles.
 
To achieve those objectives, we structured our executive compensation program to:
 
  •  Be competitive with compensation paid by companies in the same market for executive talent.
 
  •  Reward performance by linking compensation to (i) company and, for some executives as appropriate, business unit performance, and (ii) achievement of individual performance bonus goals for executives other than the chairman and the president and chief executive officer.
 
  •  Drive long-term shareholder returns by delivering a majority of executive compensation in the form of stock options which will have value only if our stock price increases.
 
  •  Align executive and shareholder interests by requiring executives to own our stock.
 
  •  Provide limited executive perquisites.
 
In this proxy statement, the term “executive officers” means our most senior executives, who are all listed under the heading “Executive Officers” in our 2007 10-K (available on our web site at http://investor.starbucks.com). The term “named executive officers” means the five executive officers named in the compensation tables that follow. “Committee” or “Compensation Committee” means the Compensation and Management Development Committee of the board.
 
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