Starbucks. New CEO.

As many of you probably already knows, SB is getting a new CEO. Who is the CEO of Chipotle. But do you know exactly what the new CEO will be getting?

SB released their 8-K filing, which outlines the CEO's offer letter.

to quickly break it down, and its a crazy …. (this isnt all of it… i just stopped reading after a bit)

Salary

• base salary is $1.6mm/yr
• reviewed annually. may be increased in discrection of the board
• base salary may not be decreased without CEO's express written consent.

Annual incentive

• annual cash bonus with target of 225% of base salary and max of 450% of base salary. Meaning he gets a bonus of anywhere $3.6mm to $7.2mm… if he does SHIT performance for 1 year, he is still guaranteed $3.6mm…

Long Term Incentive Plan

• Starting 2025, Grant of $23mm. vesting 25% / year. (im not 100% sure, but i believe he gets a new grant every year.)

Signing bonus

• $10mm signing bonus. a sign on bonus thats 6.25x his base salary

Replacement Grant

• Receive a grant of Company equity for leaving Chipotle
• (has a calculation to determine how much CEO will receive in the event of leaving SB. regardless, its a SHITLOAD) in the $75mm to $80mm range.

Termination

• Has severance plan.
• if he gets terminated, he gets an insane severance plan. Literally enough that even if he didnt have any compensation/salary/Stocks, his severance plan will be enough for him to retire on

Executive life insurance

• family coverage
• equal to 3x annualized based salary. Fully covered by SB
• pay purchase additional 2x annualized base salary up to max additional LI of $2mm.

(SB states “As an executive, you and your family have a greater exposure to financial loss resulting from your death. Starbucks recognizes this exposure and has
provided for coverage greater”. So i guess his 1 year TC of $10mm+, along with his $10mm signing bonus is not enough for his family in the untimely possibility of his death. SB gives him even MORE additional coverage (which SB pays for) for LI.)

Executive Physical Exam

(gets special treatment for physical exams. Looks like everyone on the executive team does)

Work location

(SB PAYS him to be 100% remote work. gives him his own assistance and full personal office. which SB will also provide and pay for, for maintenance)

• Not required to relocated to HQ (Seattle, WA)
• from start date until procurment of secondary residence in Seattle (up to 3 months)
  SB will cover temp housing and provide a driver while in seattle
• If decided to relocated to Seattle, WA, eligible for reimbursement for relocation expenses

Work conditions

• starting from the Start Date. company will provide a full remote office for work in Cali.
• provide assistance of CEO's choosing.
• Office will be maintained at expense of SB

Lastly, as CEO, he will be reporting directly to the Board. but get this. he will be appointed to the board of directors as Chairman. (which is usually standard, but still crazy… you report to… yourself)