Letter Agreement Regarding Compensation Terms for Michelle Gass as President, Starbucks Coffee EMEA
This agreement between Starbucks Corporation and Michelle Gass outlines changes to her compensation as she assumes the role of president, Starbucks Coffee EMEA. Effective October 3, 2011, her annual base salary will be $490,000, and she will remain eligible for the Executive Management Bonus Plan with a 75% bonus target for fiscal 2012. The agreement also increases her required stock ownership to three times her annual salary, with deadlines to meet these requirements by December 2013 and 2014. The letter confirms her acceptance of these terms.
 | EXHIBIT 10.39 |
September 16, 2011
Michelle Gass
Dear Michelle:
As I communicated to you in your August 9, 2011 letter, the Compensation and Management Development Committee (the “Committee”) was to consider further compensation changes for you in recognition of your new role as president, Starbucks Coffee EMEA. At their September meeting, the Committee approved the changes as follows:
Salary
Effective October 3, 2011, you will be paid bi-weekly a base salary that annualizes to $490,000 USD.
Bonus
You will continue to be eligible to participate in the Executive Management Bonus Plan (EMBP). For fiscal 2012 your bonus target will be 75% of your eligible base salary. Payout will be based on achievement of objectives as approved each year by the Compensation Committee.
Stock Ownership
The Company’s executive stock ownership guidelines will continue to apply to you. Effective October 3, 2011, your minimum stock ownership level as president, Starbucks Coffee EMEA will increase from two (2) times to three (3) times your annual base salary. You will continue to have until December 1, 2013 to meet your initial two times salary requirement, and an additional year (i.e., until December 1, 2014) to meet the additional multiple of salary.
On behalf of the entire team, I wish you the very best in your new role and look forward to your continued success.
Warm regards,
| /s/ Howard Schultz |
| Howard Schultz chairman, president and chief executive officer |
| cc: | partner file Kalen Holmes |
I accept employment with Starbucks Corporation, and its wholly-owned subsidiaries, according to the terms set forth above.
| /s/ Michelle Gass | 9.21.2011 | |||||
| Michelle Gass | Date |
Please sign and return one copy of this letter to Kalen Holmes.
