Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

Providing Benefits to Our Partners
Starbucks Total Pay package is the cornerstone of our pledge
to treat partners with respect and dignity. The Total Pay
package varies by country to make sure it is locally relevant.
The components may include competitive base pay, bonuses,
comprehensive health coverage, income protection, vacation,
stock options, a savings program, adoption benefits, tuition
reimbursement and partner perks, including a discount on
merchandise in our stores.
Starbucks Benefits
PARTNER BENEFITS PROGRAM DESCRIPTIONS
AND COVERAGE
Comprehensive healthcare benefits
(U.S. and Canada)
Bean Stock – Starbucks stock
option plan (eligible partners in
the U.S., Canada, UK, Hong Kong,
Netherlands, Switzerland, Germany,
Australia, Costa Rica, China,
Thailand, Singapore, Chile, Republic
of Ireland and Puerto Rico)
S.I.P. – Stock Investment Plan (U.S.
and Canada), Share Incentive Plan
(UK)
Future Roast – Starbucks 401(k)
Plan (U.S.), RRSP – Registered
Retirement Savings Plan (Canada)
W O R K P L A C E
Benefits include medical, dental, vision,
prescription drugs and alternative health coverage.
In the U.S., Starbucks paid 77 percent of health
coverage costs for partners and 60 percent for
dependents. In Canada, 73 percent of costs were
paid for partners and 45 percent for dependents.
The board of directors determines annual stock
option grants based on company performance up
to 14 percent of our partners’ eligible base wages.
Every partner through the director level receives
the same percentage of his or her fiscal-year
wages. For fiscal 2006 performance, the basis for
stock option grants was 14 percent.
Partners can purchase company stock at a
discounted price on a quarterly basis (U.S. and
Canada) or a semiannual basis (UK).
Starbucks matches from 25 percent to 150 percent
(based on the length of service from the partner’s
most recent date of hire) on the first four percent
of pay that partners contribute to the U.S. 401(k)
Plan. Eligible Canadian partners receive a 25
percent match on the first four percent of pay that
they contribute to the RRSP.
Pay at Starbucks reflects the knowledge, skills and experience
required for a specific job. We regularly consult industry
salary surveys to determine competitive rates, and pay
accordingly. Partners are also eligible for merit pay increases
based on performance.
The chart below summarizes the core benefits that our eligible
part- and full-time partners receive.
ELIGIBILITY
Once initially eligible, full- and part-time partners who
are paid a minimum of 240 hours per calendar quarter
and their eligible dependents, including spouses,
domestic partners and children. In fiscal 2006, 65
percent of U.S. partners and 61 percent of Canadian
partners were eligible for these benefits.*
Full- and part-time partners up through director level
who have been employed by Starbucks since April
1 and have been paid for at least 500 hours from
the first of the fiscal year through March 31 or from
April 1 through the end of the fiscal year. (Eligibility
requirements may vary slightly by country.) More than
70,000 partners qualified for Bean Stock for fiscal
2006 performance.
Partners who have worked as a regular Starbucks
partner for at least 90 days and have been paid for an
average of 20 hours a week during the three months
preceding the offering. No hours requirement in the
UK. In fiscal 2006, 32 percent of eligible U.S. and
Canadian partners participated in S.I.P.
U.S. partners age 18 or older may participate after the
completion of 90 days of service. Canadian partners
are eligible after one year of service. In fiscal 2006,
21 percent of eligible U.S. partners participated in
Future Roast. Sixteen percent of eligible partners in
Canada participated in the RRSP.
*With approximately four company-operated stores opening daily in the U.S. and Canada, we have a large number of partners in their eligibility waiting period,
typically three months.
Partner Benefits – Internationally
While specific benefits differ between regions and countries,
all of our international business partners share Starbucks
Total Pay philosophy. Below are several representative
examples of benefits received by Starbucks partners outside
North America.
• Japan: All partners who work 30 hours per month or
more are eligible for health insurance including annual
medical checkup. Stock and annual leave (vacation) are
also offered.
• Chile: All partners are eligible for health insurance, paid
vacation and sick leave, among other benefits.
• Greece: All partners are eligible for health insurance, paid
vacation and sick leave, among other benefits.
• China: All eligible partners receive health insurance, sick
leave and maternity leave.
• Australia: Bean Stock, paid vacation, sick leave and career
training are among the benefits offered.