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Starbucks reports Q1 increases, CEO paid $12 million in 2009
January 25, 2010
It's been a year of ups and downs for the beleagured Starbucks Corp. After a year of no raises or bonuses for company executives, CEO Howard Schultz was paid $12 million in 2009 through a variety of option awards and "other compensation," according to a story in the Seattle Times.
From the story:
Schultz's salary for 2009 was $643,954, down 46 percent because he requested in the middle of the year that his salary be reduced.After receiving no bonus in 2008, Schultz earned a bonus of $1 million last year.He also received option awards worth $9.5 million, compared with $7.7 million in 2008.Schultz's "other compensation" — for items like insurance premiums, security and retirement-plan contributions — rose 22 percent to $935,676.
The company, which has worked hard to restructure its debt and operating procedures in recent years, also was featured Jan. 22 on 20/20 in regard to a lawsuit filed by a former employee. The former Orange County worker is suing the company for allowing a 24-year-old manager to have sex with her while she was still in high school. During the interview, the employee said the man was her supervisor and she felt like she had no choice but to comply with his demands.
All of this comes at a time when Starbucks has reported that its turnaround efforts are working. On Wednesday, the company reported that its first quarter net income was $241.5 million, up from $64.3 million reported during the same period last year.
Revenue climbed 4 percent to $2.7 billion while same-store increased 4 percent, reversing several quarters of steady declines.
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