83Starbucks Corporation Fiscal 2007 Corporate Social Responsibility Annual Report
04 WORKPLACE
Offering Benefits to
Our Partners
PARTNER BENEFITS
This chart summarizes the core benefits that our eligible part- and full-time partners receive.
PARTNER BENEFITS PROGRAM DESCRIPTIONS AND COVERAGE ELIGIBILITY
Comprehensive health care benefits
(U.S. and Canada)
Benefits include medical, dental, vision, prescription
drugs and alternative health coverage. In the U.S.,
Starbucks paid 81 percent of health coverage costs for
partners and 67 percent for dependents. In Canada, 75
percent of costs were paid for partners and 50 percent
for dependents.
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 2007, 64
percent of U.S. partners and 60 percent of Canadian
partners were eligible for these benefits.*
Bean Stock – Starbucks stock option plan
(eligible partners in Australia, Canada,
Chile, China, Costa Rica, Germany, Hong
Kong, Netherlands, Puerto Rico, Republic
of Ireland, Singapore, Switzerland,
Thailand, U.S. and UK).
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 up to
the director level receives the same percentage of his or
her fiscal-year wages. For fiscal 2007 performance, the
basis for stock option grants was 10 percent.
Full- and part-time partners up to the 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
by country.) More than 85,000 partners qualified for
Bean Stock for fiscal 2007 performance.
S.I.P. – Stock Investment Plan (U.S. and
Canada), Share Incentive Plan (UK)
Partners can purchase company stock at discounted
prices on a quarterly basis (U.S. and Canada) or a
semiannual basis (UK).
Partners who have worked as a regular partner at least
90 days for Starbucks and have been paid for an average
of 20 hours a week during the three months preceding
the offering. No hour requirement in the UK. In fiscal
2007, 29 percent of eligible partners in the U.S. and
Canada participated in S.I.P.
Future Roast – Starbucks 401(k) Plan
(U.S.)
RRSP – Registered Retirement
Savings Plan (Canada)
Starbucks matches between 25 percent and 150
percent (based on the partner’s length of service from
most recent date of hire) on the first four percent of
pay that partners contribute to the U.S. 401(k) Plan.
Eligible partners in Canada receive a 25 percent match
on the first four percent of pay that they contribute to
the RRSP.
U.S. partners age 18 or older may participate after
the completion of 90 days of service. In fiscal 2007,
20 percent of eligible U.S. partners participated in
Future Roast. Canada partners are eligible after one year
of service. Eleven percent of eligible partners in Canada
participated in the RRSP.
* Approximately 6,000 partners become newly eligible for health care coverage each month in the U.S.
Starbucks Total Pay philosophy is to recognize and reward
partners’ contributions toward achieving the company’s
strategic goals and business objectives, while aligning with
Starbucks Mission Statement and Guiding Principles.
Components of the program include competitive base pay,
bonuses, comprehensive health coverage, income protection,
vacation, stock options, a savings program, adoption benefits,
tuition reimbursement and partner perks such as discounts on
merchandise. We constantly search for ways to update the Total
Pay package to optimize its benefits to our partners and ensure
that it is relevant to partners in different regions of the world.
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 strive to
pay accordingly. As part of our ongoing efforts, we continue to
work globally to identify and close any gaps to the competitive
market where they may exist.
It’s important to us that our partners truly understand their
benefits and know how to take advantage of them. Managers
are our first line of communication to partners about benefits.
Information is also available at our redesigned Total Pay
website, LifeAt.sbux.com or from our Partner Resources team.
In fiscal 2007, we tested a new technology-based system with
a series of online modules that communicate our Total Pay
benefits.
After the end of each fiscal year, Starbucks board of directors
votes to approve a Bean Stock grant (stock options) of up to
14 percent of eligible partners’ base pay, based on Starbucks
annual performance. The first Bean Stock grant was awarded
in 1991, shortly before the company went public. Since then,
partners have used Bean Stock to help purchase homes, pay
for college, save for retirement, catch up on bills, and for many
other purposes.