OPEN THREAD conversation-starter: Are you satisified with Starbucks' explanation of Howard Schultz's $12 million pay?

Starbucks says CEO Howard Schultz got a big payday because "he drove the Company to achieve strong financial results for the year despite the extraordinary challenges ... [and] made significant progress in transforming Starbucks and returning the Company to sustainable, profitable growth while preserving its values and guiding principles." [Read the story.] In other words, he was rewarded for closing stores and laying off people. Discuss this or anything else Starbucks-related in the weekend OPEN THREAD. || Jump to the second page of comments.

Comments

[Darth Sidamo]

I think this is the year where he truely earns his pay. Last year many of his decisions severely impaired the company from going forward in a sustainable manner. Those changes benifitted only the stockholders and did away with the Starbucks partner experience. In the past year I have seen many regulars find other options from the mighty hammer of under-staffing. McDonalds isn't understaffed.

This is truly the year he must restore staffing to proper levels, pay to something higher than minimum wage (something that is comparable to the amount asked from us), and to do away with the blood sucking layers of management that only care about getting their bonuses through any amount of negative treatment to store level employees.

[HAPPY SM]

Howard deserves it. I am 8 years with our company and i am even more determine and passionate to be successful. That's all..

[NEPA barista]

absolutely revolting.

[Oraclenude]

Wasn't the running joke for years that Starbucks had stores everywhere, even competing with themselves? So there was finally someone capable enough to correct that mistake and he was rewarded. End of story.

[Enlightened Coffee Sage]

"he drove the Company to achieve strong financial results for the year despite the extraordinary challenges ... [and] made significant progress in transforming Starbucks and returning the Company to sustainable, profitable growth while preserving its values and guiding principles."

Italics mine. Italicized because that part's a lie.

I took the partner survey yesterday. He said he had to make some "heartbreaking changes" due to the "cataclysmic" events in the economy. I can just imagine the tears in his eyes as his heart broke as he decided he needed another $12,000,000.

[Courtney]

I make minimum wage as a barista, and am made to feel, on a daily basis, that if I don't sell enough VIA or clean my store well enough, my world will fall apart. I feel like I am working at a nonprofit sometimes, then I am reminded, with numbers like this, that I am just at a place who doesn't care to pay their lowest employees anymore than they have to.

[Joe]

I'm just happy that since Howard was rewarded for his hard work, we baristas will be too. Any moment now, our personal days and lost vacation are coming back!

[You're kidding!]

>>>> Starbucks had stores everywhere, ...So there was finally someone capable enough to correct that mistake and he was rewarded.

HOWARD SCHULTZ: Everyone says we have too many stores, so I think I'll close a lot of them. OK, where's my $12 million?

[Moveon]

"...preserving its values and guiding principles." Seriously? For partners, less labor hours (and cut at Christmas), lost personal days, insurance went up, harder to get hours to get insurance, extreme pressure put on managers/baristas for not up selling, customer voice which is almost impossible to increase, confusion as to what direction the company is taking (first do this, then stop, then let's do that, wait, let's do this instead), company dropped in the top 500 companies to work for, raises are minuscule if any, but hey, its good to see that Howard is getting 12 million.

[Corvex Corvidae]

No, but then again, there's go way you could make an employee happy with the news that their CEO is ballparking about 1500 times your annual income.

Land of Opportunity my entire ass.

[DT]

You know what I realized - now that I'm no longer a SM - and indeed I have other options for my daily caffeine...the next time I see a DM pushing a partner to sell more VIA, or not recognizing the excellent job that the partner does (assuming I know the partner and they do), I'm going to call them out on it.

[Barista G]

I think the mere fact that he felt the need to defend it shows that even he knows it wasn't as deserved as he claims.

[Barista G]

By the way, as a current employee at Starbucks, I like my job. I honestly enjoy the challenges and the work. I love the people I work with, and I connect with customers because I want to. One day, when I leave this job, I will sorely miss a lot about it. True, the recent changes have brought a lot of "funk" into the mix, but I hope that our corporate partners can truly drive us back to the basics and focus on what's makes us work, Partners & Coffee.

[DoubleShotOnIce]

Barista G, great post. I wonder why some of the other Baristas who post stay employed with Starbucks while having such crappy attitudes.
Howard has put more into this company over the years than I'm sure most of you care to know.

[bayareabux]

What happened to taking the minimum required for insurance?

$12 million mainly based on breaking the backs of your front line employees. I'm speechless.

[Ben Farden]

Now I know why they gave up on the "lifetime" black gold card with the 10% off. Thanks Howie

[bayareabux]

You know... this store also reminds me of that one CEO who took delivery of a third corporate jet amidst the worst recession since WWII, and then took that jet on a getaway to Hawaii with Lance Armstrong while deliberately understaffing his stores during the busiest weeks of the year.

Say, who was that dude? Someone refresh my memory. It's fading in my old age.

Who was it?

[Isabella]

Was his statement about the 12 million on the portal?

[VIA targets or BUST]

My RVP sent out an email reminding all managers that VIA results were on their reviews, THANKS!

[Flabbergasted]

As an 8 year partner, I really like my job -- I love my partners and I love most of the customers. I like having pride in the quality of drinks we make (we're very competitive within the store and try to out-do each other in gorgeous foam, etc.), and I like that we have been keeping our heads above water (barely) while being understaffed in a million dollar store. I'm very proud of my coworkers for that last -- we're laying it all out to be as fast, efficient, and friendly as possible in impossible situations (2 part coverage, 3 part coverage on weekends while we're earning 30k+ a week).
Having said that, I have no idea what is going on with the company in general. It's being run so schizophrenically, and the decisions made are so poor in logic and reality. We're constantly lied to -- we're going back to strength/focus in coffee, but now we have no time for/and programs in education (Coffee Master? Black Apron coffee education?) have been eliminated; we're focusing on core values, but now we're being judged not on job performance (quality drink making, speed of service, connections to customers and community), but on sales goals met; we're strapping in and tightening our belts for the good of all partners, meaning our benefits (personal days, vacation accruement, insurance coverage) have been stripped and we're operating labor-wise as if the economy is still at rock-bottom, yet our CEO gets a $12.M paycheck?

I don't even know what to say anymore. I miss the company that hired me.

[Darth Sidamo]

You wonder why so many people complain but do not quit? Because baristas I work with I care about very much. That has NOTHING to do with how a company is operated.

[me myself and I]

The funny thing is, he claims he got us out of a mess he created in the first place. The economy just happened to tank right after, so now he is very happy about that because he can blame the circumstances.

Most of us don't quit, because the job is still okay. It is just very unfortunate it is only okay because it used to be excellent. And as a barista it might not be too difficult to find another bad low wage job somewhere, but usually you don't smell like coffee but grease when you come off shift and the companies still treat you like cattle. The only difference is, they don't lie about it.
So for now, I'll stick with my coffee scent, and dream of the better days, thank you.

[jackieshmackie]

Just working for 3 hours at the rate he's paid, he'd make as much as I do in a YEAR.

[waltie]

I couldn't care less how much any other partners make, be it Howard or other baristas in my district. How does that matter to me?

[looong time shift]

I still have not seen the $100 I helped win for my store for hitting the VIA goal during the holidays... :(

[Mrs. Tillinghamshackles]

That money was doled out awhile ago. There was an action item on the portal about how to use the money and such. Our store had a marvelous time with the money we earned!

[cheapredapron]

Guiding principles??? I wasn't aware we still had those. Everyone needs to realize that no matter what happens with the economy and company we will never get back the benefits we had,labor, or anything else. The idea is to get rid of anyone who can complain about the way things were.

[Ryan]

Waltie,

Please recognize that you do not live alone. You live in a society of millions of people. You do not grow your food, treat your water, build your roads, provide emergency health care, or educate your children. As a member of this society that provides for you, you should care about how our society cares for others. Please recognize the essential dignity of human life, and then acknowledge how a corporate structure that pays one man 12 million while paying thousands minimum wage robs us of that very same human dignity.

Please recognize that your survival is linked to the survival of your society.

[Fork me! I'm done!]

In the SBUX world it's just more Mr. Rogering again. You're so special and you deserve a trophy for promoting diabetes and pancreatic cancer.
Freakin' douche-bags. Yes, it is just a job at this level. At their level it's all about providing returns on shareholders' investments. What two words describe your work at SBUX? How about VIA SUCKS or Understaffed and Overworked. The regular that bought a 12 pack yesterday will not buy anymore the next day. Maybe in tourist traps. This ship is sinking and I really hope gung-ho Melody, Doubleshotonice, or Barista G will comment against me...by the way, I wasn't forked, it was someone else...EGADS! I'm no quitter...I gotta get fired to get unemployment.

[MOQ]

People who complain that their job at Starbucks is really, really hard need to get a clue. Hard is being a day labor. Or an ER nurse. Or a soldier. Being a barista at Starbucks is like a damn vacation.

If you have any skill at this job, it is mostly good times with some patches of difficulty. Like a good job should.

[SeattleViaColorado]

The problem is even if Howie wanted to do everything by the guiding principles he is required by law to abide by the shareholders and make a profit. So no matter what the guiding principles are in reality there is only one: profit by pretty much any means necessary. Thats whats wrong with the modern free market system. Corporations were given rights above and beyond an individual and a sworn duty to appease shareholders no matter what. The only focus is on quarterly profits not long term success and so nothing real and sustainable can be built. The value of the company isn't even really based on what it makes and how profitable it is. It's all based on perceptions and what the stock market dictates. Thats why companies like SBUX and Apple announce some of the best quarterly earnings they've had in years but on the same day the value of their stock drops. Thats why the guiding principles will only be a loose set of suggestions because when the balls are nearing the bandsaw its slash and burn baby! Slash and burn! The only way this company could ever truly live by the guiding principles and go back to those oshy goshy days of "we're all partners together" is if we were no longer a publicly trade company or if we had sustaining same-store sales growth. The prior will never happen and the latter will probably wont either especially with the lack of ingenuity and leadership in this company. Successful companies do crash and burn so follow Howies leadership and cash in as soon as possible.

[corsetcherrymocha]

I know a lot of people that claim to want to quit. I was hired into starbucks two years ago. Coming in I fell in love with my job. I loved the facts I learned about the coffee. I completed (for the most part - I was hired in during an off-season for christmas and thanksgiving blend) my coffee tastings and passport. I even did a tea passport to the best of the available abilities. I was thrown on drive-thru without training completed, same for register. I did it anyway. I learned from experience. At the time it was my dream job - now? I find myself debating every day on whether or not to turn in my two weeks notice.

I've gone from one store in my area to another. I went from a male store manager to a female store manager. I've watched co workers go from being treated like a valued part of the team to getting yelled at for not mis ringing items. Only to get yelled at by a customer when they see their receipt is wrong.

I was taught to ring honestly at one store to moving to a ruthless - do anything to win store. I've worked 9 hours without a break on a regular basis. I've worked 10hrs and had to clock out for a lunch that I was still on the floor for.

I am not a shift but I have constantly found myself having to find coverage for people unable to come in because my manager "has business to attend to."

It's gotten to the point I come into work to be yelled at for doing the right thing. My job has been threatened because I refuse to ring up the wrong items. I'm yelled at for actually believing if I put my heart into something and promote the object because I, myself, enjoy the facts about it. Because I, myself, happen to love the flavor of Dark Cherry Mocha. I've found myself treated like an infant. As if I cannot understand why we must lie on the POS. Why these goals are so important. I've found myself demeaned because I thoroughly enjoy VIA and enjoy actually talking to customers about it.

When I started this job it was about connecting. It was about entertaining and making the customer have a good day. I use to pride myself in making customers smile and then setting the next shift up for success. Now every move I make I worry I will be fired because I have a true passion for a job that pays me 8 dollars an hour without any foreseeable future promotion into shift manager. Instead I stay to pay my bills. I stay because I hope what I was taught to be will once again be. But that does not change how disappointed I am in this company. That does not mean I won't complain when I hear BS stories about his pay increasing while I fight to keep health insurance while being a full time student and mother of an 18mo old at the age of 20. He did not deserve it. Just like these hard working baristas, shifts, asms, and sms do not deserve the stress this job brings.

[Doing my JOB]

"People who complain that their job at Starbucks is really, really hard need to get a clue. Hard is being a day labor. Or an ER nurse. Or a soldier. Being a barista at Starbucks is like a damn vacation. If you have any skill at this job, it is mostly good times with some patches of difficulty. Like a good job should."

I totally agree with MOQ that this is a cake job, no matter how you look at it in comparison to other jobs.

I am also sick of all the "I hate Starbucks, but I work there to pay my bills" lines. If you are getting paid $8-$9/hr, you can find another job out there at the same rate....even with the unemployment rate as it is..those jobs exist. If you're an SM and complaining in the same fashion, go manage other retail at the mall...job exist there. Won't be easy, but for you working at Starbucks isn't either.

I would bet that most would leave Starbucks, realize that the other job sucks even worse, asks more of them, still make them work 9 hours with no break (ever been a waiter or waitress or work in a kitchen? Those people constantly work 12 or more hours with no break at all), then try to claw their way back into our great company.

The problem is that some people are just plain spoiled and think that Starbucks should kiss your ass and put their arm around you all the time. It's a job people, that means they pay you a rate that you both agreed upon to do a service. If you don't like the job, or can't perform the service as required, then leave.

[weathered barista]

People who say the reason why they do not quit despite more harsh working conditions is because they can not find a better job. Lets be honest, there are not any jobs out there unless you have alot of experience and education. Most Baristas do not have this.

[Melody (@ForkMeI'mDone)]

@ForkMeImDone - Mostly I try to avoid conversations about CEO salary. There's no good answer. The reality is that Howard is paid like a CEO of a billion dollar company and he's making millions just as other CEOs of big companies make. The larger questions are generally should CEOs make two to three hundred times more than the average worker. Is that ethical? Someone will always be critical of how much he makes. If he took that one mill bonus and poured it into the Cup Fund, that gesture would still be too small for many.

I'm with you 100% that I want to see more labor on the floor. (how is there time for real coffee education. What barista can stop and spend 10 minutes talking to a customer about how the growing region affects flavor). Stores with old equipment need help. Lots of stores need some refreshing in their furniture. And my understanding is that barista discount on stock purchasing is at an all-time low: You're partners the more you're invested in the company.

*groan* It's not like he made 12 million cash. You see I just write in circles on this topic because trying to suggest how much money a CEO should make is pretty difficult. He should be paid like a CEO and rewarded for bringing up the stock price and improving store traffic, but we still have so far to go too, and that's a lot of dough he makes! How many trenta cups would it take to fill them all with a million dollars?

[Doing my JOB]

Oh come on....experience and education? We are talking about baristas here, who work in retail, not engineers, people in finance, etc...I am being honest, there are jobs for the same pay out there. My point was that the people complaining about Starbucks will go find a job for the same pay and realize they are treated even worse at other companies. Stop expecting Starbucks to feel like they owe something to you besides a paycheck and benefits...you are in a job and paid to do that job.

[Doing my JOB]

On another note, you again point out "harsh" working conditions? That's what I was agreeing with MOQ about in my first post...you find working in a coffeehouse harsh (even if that means pushing VIA, strict adherence to EcoSure, cutting labor hours, etc...)then you need a lesson in life. That's not "harsh" at all, that's expecting people to do their jobs. Poeple in countries at war, living in Chile, still living in mobile homes after Katira, living without human rights, living with disease and famine, etc...that's harsh. You work in a frickin' coffee shop and compain that that's harsh...ridiculous.

[norcalsm]

One can work for a company and care deeply about it, while still being critical about it's shortcomings--that's how companies improve! Those of us who have been with Starbucks for several years can remember when the company actually adhered to it guiding principles--and it wasn't all that long ago! Sure, there are other jobs out there that are worse, but is that really the standard that we want to hold to? What made Starbucks great was the fact that it was such a fantastic work environment-partners and customers connecting with one another and creating a true "third place". Now unfortunately, we've become just another fast food operation--very sad when you REALLY stop to think about.

[Joe]

"Stop expecting Starbucks to feel like they owe something to you besides a paycheck and benefits...you are in a job and paid to do that job."

I'm sorry if I feel like I'm owed the benefits I was promised when I took this job. Then I was told that tough sacrifices had to be made for the good of the company. I was told this by Howard Schultz. The man who clearly is not having to make these same sacrifices himself.

[ICU]

Doing my job, you're boring. I couldn't think of any other way to phrase that, because your arguments are just so typical and yawn-inducing. "Your life isn't terrible, look at these other worse conditions in these extraordinary cases!" Either you're trolling, or you actually believe your arguments. Either way, I'd pin your mental age at around high school.

[Karl Kenya]

Irony. The people complaining loudest are the people who would take $12 any day of the week. If you have a principled argument against high executive pay, then make it. But most of you are mad because the money isn't going to to you, not because you care about the growing problem of economic disparity between the rich and the poor.

Corporations are not democracies.

[Karl Kenya]

...that's $12 million

[Barista G]

Wow, I never realized how many outwardly negative people come here. I can understand being angry at the world. I can understand arguing for arguments sake. Still, I cannot fathom why some people come here to do nothing but inject anger and hatred into other people's life. Yeah, a lot about working at Starbucks sucks. Yeah, A lot of people use words a bit more dramatic than necessary to describe the conditions. Unfortunately, that's all part of living with human beings. Everything is all perspective. You may see it as the end of the world, while I only see it as the end of your world. However, there is no logical reason to seek out people and try to darken their lives. I have trouble believing some of you would have ever worked in Starbucks if that's your purpose in life.

[Burned Bean]

here is my two cents....

$12 million is how much is costs for a company to lose it soul...

[tampass]

@ flabbergasted, if your store is earning that much money you should have way more coverage than that even with labor cutbacks. something is not right with that picture of having a 2-3 man deployment with 30k a week sales.

[Karl Dahlquist]

I don't know...but Howard did tell everyone that would listen he would cut his pay to $10k for 2009, yet he takes home $12 million?? You can google all the widespread attention it received in the media.

They could have saved some jobs (and heartache) at HQ with that kind of dough.

[(former) FLA SM]

"However, there is no logical reason to seek out people and try to darken their lives."

Isn't that in the job description for DMs?

[Darth Sidamo.]

"Poeple in countries at war, living in Chile, still living in mobile homes after Katira, living without human rights, living with disease and famine, etc...that's harsh."

According to your logic before that then why dont people after Katrina stop living in mobile homes and move some place else or get a real job. I mean if finding them is as easy as you say it is then why cant they? Forum trolls need to grow up.

[tiredofthis]

Although I am not thrilled with many aspects of the transformational agenda, I feel sorry for anyone who still holds out hope the that Howard is a great leader. His actions clearly indicate that he cares solely about the bottom line not the everyday employee who actually interfaces with the customer.