Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 8, 2018, Starbucks Corporation (the “Company”) announced the appointment of Patrick J. Grismer as executive vice president, chief financial officer, effective November 30, 2018. In this capacity, Mr. Grismer will serve as the Company’s principal financial officer and principal accounting officer, effective November 30, 2018. Mr. Grismer is expected to join the Company as executive vice president on November 12, 2018. As previously announced, Scott Maw will retire as chief financial officer of the Company on November 30, 2018 and will serve as a senior consultant through March 31, 2019.
Mr. Grismer, 56, has been Executive Vice President, Chief Financial Officer of Hyatt Hotels Corporation, a global hospitality company, since March 2016, where he is responsible for Hyatt’s global finance function. Mr. Grismer joined Hyatt following his post as Chief Financial Officer at Yum! Brands, Inc., a position he held from May 2012 to February 2016. He previously held a number of roles at Yum!, including Chief Planning and Control Officer and Chief Financial Officer for Yum! Restaurants International. Prior to Yum!, Mr. Grismer worked at The Walt Disney Company where he served in roles that included Vice President, Business Planning and Development for The Disneyland Resort and Chief Financial Officer for the Disney Vacation Club. Mr. Grismer began his career with Price Waterhouse. He earned CPA certification in the State of California (inactive status).
In connection with Mr. Grismer’s appointment, the Compensation and Management Development Committee of the Board of Directors of the Company approved an annualized base salary of $845,000, an annual bonus target under the Company’s Executive Management Bonus Plan of 100% of base salary, a new hire equity award of $7,500,000 and a new hire cash award of $1,500,000. The equity award will consist of time-vesting restricted stock units (“RSUs”). The RSUs will vest 40% on the first anniversary, and 30% on each of the second and third anniversaries, of the date of grant, subject to continued employment. The new hire cash award will be paid in full following 30 days of employment, subject to aone-year repayment agreement. The foregoing description is qualified in its entirety by reference to Mr. Grismer’s Offer Letter dated October 5, 2018, which is attached hereto asExhibit 10.1 and incorporated herein by reference.
There is no arrangement or understanding between Mr. Grismer and any other person pursuant to which Mr. Grismer was appointed. There are no family relationships, as defined in Item 401 of RegulationS-K, between Mr. Grismer and any of the Company’s executive officers or directors or persons nominated or chosen to become a director or executive officer. There are no transactions in which Mr. Grismer has an interest requiring disclosure under Item 404(a) of RegulationS-K.
Item 7.01 Regulation FD Disclosure.
A copy of the Company’s press release relating to the announcement described in Item 5.02, dated October 8, 2018, is furnished asExhibit 99.1 to this Form8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
