Starbucks execs won’t get raises in the next year
Coffee giant Starbucks Corp. said Chief Executive Howard Schultz and other top managers won’t get a raise in the next fiscal year as the company tries to boost profit.
U.S. employees at the vice president level and above won’t get pay increases for the fiscal year beginning Sept. 29, the Seattle retailer said Wednesday in an internal memo confirmed by spokeswoman Deb Trevino.
Starbucks posted its first quarterly loss in 16 years as a public company July 31 and said it would close more U.S. stores than it would open next year.
The chain probably won’t meet the financial goals necessary to trigger bonuses for managers, the memo said.
“The global economic environment remains extremely uncertain,” Chet Kuchinad, vice president of human resources, said in the memo.
Store and regional managers remain eligible for a 3.5% salary increase, the memo said.