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January 6, 2021
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Thank you for your contributions to Starbucks success and congratulations on your promotion to the role of executive vice president and chief financial officer. I look forward to your first day on February 1, 2021.
Here Are The Specifics Of Your Offer:
You will be paid a base salary that annualizes to $800,000.
Promotional Equity Award
You may be eligible to receive an equity award with an economic value of $1,000,000 (USD) under the 2005 Key Employee Sub-Plan to Starbucks Corporation 2005 Long-Term Equity Incentive Plan (the Plan) with 100% in the form of restricted stock units. Your eligibility for the restricted stock units is subject to approval by the Compensation and Management Development Committee of the Board of Directors (Committee) or its designee. The grant date for your equity awards will be after you assume your new position and otherwise effective in accordance with the Companys equity grant timing guidelines. The restricted stock units will vest 50% on the second anniversary date of the grant and 50% on the fourth anniversary date of the grant, subject to your continued employment.
Executive Management Bonus Plan
You will be eligible to participate in the Executive Management Bonus Plan (EMBP) in fiscal 2021. Your incentive target will be 120% of your eligible base salary, prorated from your eligibility date in your new role. For more information about the EMBP please talk with your Partner Resources contact. Starbucks reserves the right to review, change, amend, or cancel incentive plans at any time.
Starbucks Total Rewards philosophy includes long-term incentives. Each year, as determined by the Committee, you may be eligible to receive an equity award under the Leadership Stock Plan with 60% of the economic value in the form of performance restricted stock units and 40% of the economic value in the form of time-based restricted stock units. Annual awards are typically granted in November and are contingent upon Committee approval after considering a number of factors. You will be eligible for an annual long-term incentive award starting in fiscal 2022 (with an expected grant sometime in November 2021). Starbucks reserves the right to review, change, amend, or cancel long-term incentive plans at any time.
As a senior executive, the Companys executive stock ownership guidelines will apply to you. The guidelines require covered executives to achieve a minimum investment in Starbucks stock within five (5) years. Your minimum investment as evp and chief financial officer is three (3) times your annual base salary. A copy of the guidelines will be provided to you.