Starbucks Corporation · NASDAQ:SBUX
Starbucks — Proxy Contest (February 2018)
22 slides from Starbucks's proxy contest presentation, Feb 16, 2018
Slide 1: Shareholder Engagement: Financial Targets, Executive Compensation, Governance & Global Social Impact Update
Shareholder Engagement: Financial Targets, Executive Compensation, Governance & Global Social Impact Update February 16, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained herein are “forward-looking statements” within the meaning of the applicable securities laws and regulations, including, without limitation, statements regarding our fiscal 2018 and long-term targets and efficiency to drive long-term ROIC. Gene
Slide 3: Table of Contents
Table of Contents Share our Financial Targets Summarize our Pay-for-Performance Executive Compensation Program Highlight our Corporate Governance Practices and Board of Directors Demonstrate our Commitment to being a Globally Responsible Company 4 8 12 15 Goals: Slide: Provide Board Recommendations
Slide 4: Financial Targets
Financial Targets
Slide 5: Positioned to Deliver Long-Term Growth
Positioned to Deliver Long-Term Growth Strategic Plan Informed by the Following: 1 2 3 3% to 5% Annual Global Comp Store Sales Growth High single digits Annual Consolidated Net Revenue Growth 25% or greater Annual ROIC* 12% or greater Annual Non-GAAP EPS Growth Long-Term Financial Targets November 2
Slide 6: Laser-Focused on Fiscal 2018 Targets
Laser-Focused on Fiscal 2018 Targets (1) We expect global comp store sales growth to be near the low end of the range for FY18. (2) We expect consolidated net revenue growth of approximately 9% to 11% when including approximately 4 points of favorability from the East China acquisition and approxima
Slide 7: Capital Returns and Efficiency
Capital Returns and Efficiency $1.2 $1.5 $2.4 $3.2 $3.5 ($ in billions) 5-Year Cumulative: $11.8 billion; 5-Year Growth: 187% COGS: $1.4B in cumulative supply chain savings from FY15-FY21 Core G&A: Grow at ½ the rate of revenue growth from FY17-FY21(2) Streamline initiatives to support ROIC: Transit
Slide 8: Executive Compensation
Executive Compensation
Slide 9: Pay-for-Performance
Pay-for-Performance Starbucks executive compensation program reflects a strong pay-for-performance alignment tied to overall company and business-unit performance, with the vast majority of pay variable and “at-risk.” Long-Term Incentive Plan Annual Incentive Plan Performance RSUs (60%) Number of sh
Slide 10: Fiscal 2017 Financial Results Under Incentive Plans
Fiscal 2017 Financial Results Under Incentive Plans (1) These financial performance metrics were used in determining (i) payouts under our EMBP, and (ii) the number of Performance RSUs earned with respect to awards granted in FY16. Note that these financial measures may differ from the comparable GA
Slide 11: Executive Compensation Tied to Company Performance
Executive Compensation Tied to Company Performance (1) Excluding our executive chairman, Howard Schultz, whose compensation is 100% variable. 79% 17% 4% president & ceo All Other NEOs(1) 90% Variable 83% Variable 86% 4% 10%
Slide 12: Corporate Governance
Of Corporate Governance ‘
Slide 13: Fiscal 2017 Corporate Governance Highlights
Fiscal 2017 Corporate Governance Highlights Independent Director Nominees 9 of 12 Mandatory Retirement Age 75 Full Board Meetings 8 Board Evaluations Annually Frequency of Board Elections Annual Director Equity Grants Yes
Slide 14: Diverse and Experienced Board of Directors
Diverse and Experienced Board of Directors(1) (1) Excludes William W. Bradley and Robert M. Gates, who will retire immediately prior to the 2018 Annual Meeting of Shareholders. Director names in black font are independent. Satya Nadella Joshua Cooper Ramo Clara Shih Javier G. Teruel Myron E. Ullman,
Slide 15: Outreach Efforts Global Social Impact
Outreach Efforts Global Social Impact
Slide 16: What is the Role and Responsibility of a For-Profit Public Company?
What is the Role and Responsibility of a For-Profit Public Company? Be Globally Responsible Create Opportunities Strengthen Communities 100% Ethically Sourced Coffee As of FY16, 99% of all coffee purchased is ethically sourced. Build and operate 10,000 stores globally by 2025 using green building st
Slide 17: Our Future in Sustainable Coffee
Our Future in Sustainable Coffee Making coffee the world’s first sustainably sourced agricultural product While nearly all of the coffee we purchase is ethically sourced, we can do more. Through the Sustainable Coffee Challenge, we are working together with other industry players, governments and no
Slide 18: Board Recommendations
Board Recommendations
Slide 19: Proxy Voting Recommendations
Proxy Voting Recommendations For each director nominee Election of 12 directors Proposal Recommendation For For Against Against Against Report on Sustainable Packaging Diversity Report Advisory resolution to approve our executive compensation Ratification of selection of Deloitte & Touche LLP as our
Slide 20: -swonguvas
-swonguvas
Slide 21: Fiscal 2018 Projected Non-GAAP Measures
Fiscal 2018 Projected Non-GAAP Measures In addition to the GAAP EPS projection in this presentation, the company provides a non-GAAP EPS projection that is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Our non-GAAP EPS projection exclud
Slide 22: Fiscal 2018 Projected Reconciliation of GAAP to Non-GAAP EPS
Fiscal 2018 Projected Reconciliation of GAAP to Non-GAAP EPS (1) Represents restructuring related expenses and related inventory write-offs recorded within cost of sales including occupancy costs. (2) Includes transaction costs for the acquisition of our East China joint venture and the divestiture