Starbucks Executives Get Pay Freeze

Top executives at Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) including Chairman and Chief Executive Howard Schultz will not be getting raises anytime soon, after the coffee chain's first-ever quarterly loss as a public company.

U.S. workers at the vice president level and higher will not receive salary increases for fiscal 2009, according to a memo posted on www.starbucksgossip.com and confirmed by a company spokeswoman on Wednesday.

Eligible U.S. assistant store managers, store managers, retail management trainees, district managers and most hourly roasting plant will receive a 3.5 percent salary raise, the memo said.

Read the whole story here.

Comments

[paulbikes]

I desperately want starbucks to fail. Followed by everyone else who dosent just cash in on cool, but violently rapes, beats and strangles cool until every last penny falls out of it.

I guess that model is going nowhere, but at least watching starbucks fail would feel really good. realllly good.

[johnnygoodwud]

i have a starbucks 3 blocks from my house and had a daily ritual of getting my venti reg. coffee. the way i figure it, and i'm sure alot of other people, every starbucks is like drinking one half gal of gas. so starbucks is more expensive than gasoline. i still go, just not everyday.

[Eric8869]

Maybe if they bring their receipt back after 2pm they can get part of their salary back?

[gcallaghan]

Hey, big shots! here's an idea: try dipping your hand into the employees' tip jars. You tried that already?

[vippy]

Any decent company in the past had performance goals and rewarded them. Whoever heard of getting compensated for being incompetent?

[Chavez08]

Oh, and Andrew!...We're cutting your comp. package from a Venti to a Tall....

[WillNYC]

Well lets face facts... any company that sells food products, uses electricity, pays rent for retail locations, uses outside shipping and just about anything that require fuel.. is going to start hurting this year... big time.

[Seattlenative]

As a former insider, I can tell you, don't feel too sorry for SBUX management. They are so top heavy with Directors, Managers, Executives - and most of them could care less about the company and are only there to advance their own career, at the expense of the long term employees who lived and breathed and loved the SBUX brand. Many workers were at the job for years, sacrificing family obligations for the benefit of the company, and were tossed out like so much trash during the last few lay-offs.

Try the MacDonalds coffee, it's not too bad.

[Podewumun]

Sounds like Starbuck's execs woke up and smelled the coffee.

[applespider]

I guess it's sad, in a way, that this is news. The company didn't grow this past year, in fact, it is shrinking and taking a loss.

It follows then that the leadership of the company shouldn't receive a bonus or pay raise this year. Right? Good for them, that they're leading from the front, instead of being corrupt greedy pigs like most of thier corporate leadership peers.