After closing 600 stores, Starbucks told its employees this week that none of its senior management would get a raise during the upcoming fiscal year and they probably won’t meet the financial targets that trigger cash incentives, either. Small justice for reamed shareholders.
The move reflects the Seattle-based coffee chain’s continuing effort to rein in spending as it tries to revive its profit growth and stock price.
No U.S. workers at vice presidential level or above, including members of the senior management team, will get raises for the coming fiscal year that starts at the end of September, the memo said. The memo appeared on www.starbucksgossip.com; a Starbucks spokeswoman confirmed its authenticity.
The memo also says that based on year-to-date performance, the coffee chain isn’t on track to hit the financial targets that trigger its general management incentive-plan payouts. The company describes those as performance-based cash incentives awarded to nonstore managers based on, among other things, fiscal earnings per share and employees’ individual performance.
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