Starbucks Corporation (SBUX, Financial) has announced amendments to the offer letter of its Chief Executive Officer and Chairman, Brian Niccol. The changes, effective November 19, 2024, aim to better align Mr. Niccol's performance-based equity grants with the company's grant practices.
The amendments clarify that the number of shares subject to Mr. Niccol's replacement equity grant, referred to as the "Replacement Grant," will have a target value between $75,000,000 and $80,000,000 on the date of grant. This target value will be calculated using the closing stock price on the grant date, rather than the grant date fair value.
Additionally, Mr. Niccol will be eligible for an annual grant in fiscal year 2025 with a target value of $23,000,000, also calculated using the closing stock price on the grant date. This target value is subject to future adjustments by the company's board of directors based on Mr. Niccol's performance.
The board of directors has approved, confirmed, and ratified these amendments to ensure they accurately reflect the intent of the original offer letter and align with Starbucks' equity grant practices.
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