(Bloomberg) -- Starbucks Corp.'s board granted Chief Executive Officer Kevin Johnson a special award that could pay him as much as $50 million in cash if the firm outperforms peers over the next three years.
Johnson will collect the full amount if Starbucks' stock return for the three years ending Sept. 30, 2022 exceeds at least 80% of S&P 500 companies, according to a regulatory filing Monday from the Seattle-based coffee shop chain. The payout will be reduced if the return is lower, and eliminated entirely if it falls below the 40th percentile.
Chief Operating Officer Rosalind Brewer received an award with similar terms. It could pay her as much as $10 million. The grants were made in recognition of their “high caliber leadership,” the filing said.
Johnson, 59, took over as CEO in 2017 after founder Howard Schultz retired from the job. Johnson has an annual target compensation of around $15.6 million, including salary, bonus and long-term incentives. Special awards typically come on top of an executive's regular pay package.
The median Starbucks employee received compensation worth $12,754 in 2018, including salary and stock. Many of the company's baristas work part time.
Read also: Starbucks to spend $250 million on worker benefits after tax cut
To contact the reporter on this story: Anders Melin in New York at amelin3@bloomberg.net
To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Sally Bakewell
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