Executive Management Bonus Plan - Starbucks Corp.
EXECUTIVE MANAGEMENT
BONUS PLAN
(AS AMENDED THROUGH NOVEMBER 15, 1999)
PLAN EFFECTIVE DATE September 30, 1996
PURPOSE The purpose of the Plan is to provide an incentive for
the achievement of Goals that support Starbucks
Strategic Plan.
TERMS AND DEFINITIONS
- PLAN NAME The Executive Management Bonus Plan.
- PARTICIPANTS Employees serving in positions of executive vice
president and above, as well as certain other senior
officers of the Corporation specified by the
Compensation Committee ("Participants").
- PLAN PERIOD The Starbucks fiscal year.
- BASE PAY The monthly pay (annual pay divided by 12) established
for the participant by Starbucks and in effect on the
last day of the Plan Period or, in the case of a
deceased or disabled Participant, on the last day of
participation in the Plan. Starbucks, in conjunction
with the Compensation Committee of the Board of
Directors ("Compensation Committee"), may at any time,
in its sole discretion, prospectively revise the
Participant's Base Pay.
- BONUS PAYOUT The actual award (expressed in dollars) to the
Participant based on the terms of the Plan.
- TARGET BONUS A percentage of each Participant's Base Pay as
established each year by the Compensation Committee.
- PERFORMANCE In accordance with Section 162(m) of the Internal
MEASURES AND Revenue Code, at the beginning of each Plan Period, the
GOALS Compensation Committee selects specific measures among
Earnings Per Share, Return on Capital, Sales Growth and
Volume, and/or Return on Assets as the Objective
Performance Measure or Measures for such Plan Period.
Single or multiple Performance Measures may be selected.
Objective Performance Measures are the basis for 70% of
the total Bonus Payout.
The remaining 30% of the total Bonus Payout is based on
individual Goals with corresponding percentage weights
designed to measure a Participant's achievements.
Each Participant will develop individual Goals for
approval by the Compensation Committee against which
performance under the Plan will be measured.
ELIGIBILITY The senior vice president, Human Resources has the
authority to recommend Participants. The Compensation
Committee has the sole authority to approve Participants
who:
1) remain a Starbucks partner through the end of
the Plan Period, unless employment is
terminated prior to the end of the Plan
Period due to death or disability, and,
2) refrain from engaging during the Plan Period,
directly or indirectly, in any activity which
is competitive with any Starbucks activity.
Participation will conclude upon termination of the
Participant's employment, withdrawal of selection by the
Compensation Committee, transfer to a position
compensated otherwise than as provided in the Plan, or
termination of the Plan by Starbucks.
Starbucks may terminate the Plan or a Participant at any
time and for any reason.
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BONUS PAYOUT At the end of the Plan Period, the Compensation
DETERMINATION Committee will oversee the determination of the
Participant's Bonus Payout, as follows:
- COMPENSATION - Determine extent to which the selected Objective
COMMITTEE MEMBERS Performance Measure or Measures and individual
Goals were achieved.
- Determine the Bonus Payout for each Participant.
The Compensation Committee may exercise its
discretion to determine that the Bonus Payout for
any Participant will be less than (but not
greater than) the amount earned by such
Participant under the Plan. The maximum Bonus
Payout pursuant to the achievement of the
Objective Performance Measure or Measures shall
be $1,000,000.
- Prorate the Bonus Payout for any partner who
becomes a Participant after the start of the Plan
Period, is on a leave of absence for a portion of
the Plan Period, or whose employment with
Starbucks is terminated prior to the end of the
Plan Period because of disability or death.
A prorated Bonus Payout will be calculated by
multiplying the number of full months during
which the Participant participated in the Plan
during the Plan Period. Credit will be given for
a full month if the Participant is eligible for
15 or more calendar days during that month.
- SENIOR VICE - Review the Bonus Payout against the Plan.
PRESIDENT, HUMAN
RESOURCES
- PAYROLL - Prepare bonus checks for distribution.
BONUS PAYOUT - The Bonus Payout will be made as soon as
administratively feasible and is expected to be
approximately 45 to 60 days after the end of the
Plan Period.
- No amount is due and owing before the Bonus Payout has
been determined.
- The Bonus Payout will be granted to Participants in
cash separate from, and not added to, Base Pay.
- The Bonus Payout will be taxed at the flat IRS rate
plus applicable state and local rates for bonus
payments.
ADMINISTRATION The Plan is administered by the senior vice president
Human Resources in conjunction with the Compensation
Committee. In the event of a dispute regarding the Plan,
the Participant may seek resolution through the senior
vice president Human Resources and the Compensation
Committee.
TERMINATION OF The Plan is not a contract of employment for any period
EMPLOYMENT of time. The Participant may resign or be terminated at
any time for any or no reason. Employment and
termination of employment are governed by Starbucks
policy and not by the Plan.
REVISIONS TO THE PLAN The Plan will be reviewed by the senior vice president
Human Resources and the Compensation Committee on a
periodic basis for revisions. Starbucks reserves the
right at its discretion with or without notice, to
review, change amend or cancel the Plan, at any time.