Starbucks’ Schultz Paid $21.8 Million in Final Year as CEOby
Cash incentive fell to $3.2 million on sales, operating income
Schultz to leave CEO role April 3, remain executive chairman
Starbucks Corp. boosted Chief Executive Officer Howard Schultz’s compensation 8.6 percent to $21.8 million for fiscal 2016, his last full year on the job, after the company posted record revenue and earnings.
Schultz, who’s also chairman and a billionaire, received a $1.5 million salary and $3.19 million cash incentive tied to adjusted net revenue and adjusted operating income for the year ended Oct. 2, according to a proxy statement filed Friday. He also got equity awards worth $16.9 million, split between stock options and restricted shares tied to goals.
Under Schultz, the world’s largest coffee-shop operator added more than 2,000 stores worldwide in fiscal 2016, including a push into low-income areas such as Ferguson, Missouri, and the Jamaica section of Queens in New York. Schultz is set to step down as CEO in April to hand the reins to Chief Operating Officer Kevin Johnson. He’ll remain executive chairman.
Schultz can earn up to twice as many shares of his restricted stock award if goals are exceeded. The Seattle-based company awarded him a $20.1 million compensation package for fiscal 2015.
Johnson received an $11.1 million compensation package for fiscal 2016, a 30 percent increase from the previous year. The pay included $500,000 for part of his sign-on bonus and equity awards valued at about $8.51 million.