SBUX
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Jim Donald’s severance package: $1.25M
Posted by Starbucks Insider on 28 Jan 2008 | Tagged as: Jim Donald, SBUX
Jim Donald is being let go with a fairly small severance package as far as major publicly traded companies go. With a salary of $1M a year, and then further stock options Jim Donald will get $1.25 over the coure of the rest of the year for his severance package.
Again, I think it’s a reasonable level for the work that he did. Not saying he did a great job in the last year, but at least he isn’t being given a bloated severance package.
Top 3 execs don’t get bonuses
Posted by Starbucks Insider on 24 Jan 2008 | Tagged as: Howard Schultz, Jim Alling, Jim Donald, SBUX
It’s good to see a large company like Starbucks keeping their bonuses in check. Howard, Jim Donald, and Jim Alling didn’t recieve their stock bonuses last year becasue of the poor performance Starbucks had in 2007.
I’m really happy to see something like this with a large publicly traded company. I feel that these execs deserve the huge paycheck they receive, as long as they are delivering to the shareholders. In an age where Robert Nardelli drives Home Depot’s stock into the ground and he’s rewarded with a $210M severance package as well as many other similar examples, it good to see that Starbucks execs compensation is actually tied to their performance.
SBUX: Worst stock pick for ’08?
Posted by Starbucks Insider on 14 Jan 2008 | Tagged as: Howard Schultz, SBUX, Starbucks Experience
Todd Wenning over at Monley Fool has just named SBUX as the worst stock pick for 2008. He lists a few reason, and draws a correlation between Howard and Michael Jordan, and although I disagree, I think he makes some valid points for why the stock won’t rebound in ’08.
“Diminished competative advantages” and “Watered down experience” are his two reasons. They are both valid concerns, and in all honesty, they’re what I think Howard noticed not being taken care of while he was gone that made him step back. Wenning, brings up a great point that I wondered about when I read, “Pour Your Heart Into It” a few years ago;
According to Schultz’s 1997 book Pour Your Heart Into It, franchising was “almost a forbidden word to Starbucks.” “We refused to franchise,” Schultz said, “Although it would have been tempting to share costs with franchisees, I didn’t want to risk losing control of the all-important link to the consumer.”
Ironically enough, just one year later, Starbucks introduced its first “licensed” location at Albertson’s grocery stores. Even though licensed locations in stores such as Target (NYSE: TGT) and Safeway (NYSE: SWY) helped Starbucks expand and kept financial costs down over the past decade, the initiative may end up costing the company brand value in the long run. These locations, after all, are not the typical Starbucks “third place,” but simply “refueling stations” for sluggish shoppers who need a caffeine boost before spending money.
I think that fixing this is priority number one for not only the SBUX stock, but also to create a better astmosphere to work in and make your third place again.
How do you think the stock will go this year? Howard’s back, McDonalds is coming on strong, and the price of milk has increased… what will this all mean?
Cramer screaming in favor of SBUX!
Posted by Starbucks Insider on 13 Jan 2008 | Tagged as: Howard Schultz, Mad Money, SBUX
Sounds like Howard and Jim Cramer had a talk about what the plans for Starbucks are over the future, and after talking with Mr. Schultz Jim Cramer became a fan. Glad to hear he is back on SBUX’s side as the stock needs all the help it can get.