Starbucks paid ex-president Alling $600,000 to go away

James Alling will get a lump sum payment equal to 12 months of base salary -- which is $600,000 -- under a separation and release agreement. Starbucks also said in an SEC filing that the former Starbucks Coffee International president will get 12 months of outplacement services up to a maximum of $14,000. In return, he agreed to not work for a competing business and promised confidentiality about his time at Starbucks. Alling last week was replaced by COO Martin Coles.  (Read the Dow Jones Newswires story)

>Earlier: Ex-Starbucks president Donald receives $1.25 million severance
 

Comments

[STARBUCKS GOSSIP WEBMASTER]

The name of the person submitting the comment appears AT THE END of the comment (not above it).

[Jeff]

Honestly, this isn't out of line with other severance packages given to executives at other companies. I'm sure that some will bemoan this package without thinking about it...the standard knee-jerk reaction.

[Brooke]

that's not surprising. starbucks will throw money at things like this, but scrimp on stuff that matters. the company is going down the drain.

classic example: i quit the bux back in february right around the time all these recent changes were occuring: the attitude and reactions in management were very greedy and fearful.

my boyfriend still works for starbucks. the air-conditioning in their store has been out since Friday. no biggie right? wrong. it's 107 here in TX and today is monday. his manager just TODAY approved the work order to fix the AC and because of her 3 day delay, they have to order a part that will take 5 days to arrive. this is typical starbucks: screw the partners and then wonder why business isn't going well. good job Howie!

[Ephlan]

I feel your boyfriends pain Brooke. My a/c here in TN is having problems all the time but our facilities Manager won't do anything to fix it. same goes for our bathrooms. the womens hasn't worked for 5 days and goes out every week on a regular basis.

[Zipy]

That sucks. My manager is awesome at getting things fixed, he's actually pretty good at fixing things himself, and I don't even consider calling him if something like the a/c or bathroom was to break -- I'd just do it.

I guess thats the sad part of the bux, some places have crappy DM/SM/etc. I feel your pain, and wish there was more good talent to go around.

[bdanfers]

Intentionally NOT fixing bathroom and HVAC problems to save money, if that's what is happening here, is unsafe and bad for everyone involved (and proven to be bad for sales as well.) Leave Howard Schultz a voice mail or e-mail every day the people whose job these tings are refust to do them. It might give him some insight into the real issues.

[former manager]

Jim Alling is a very inspirational guy who helped motivate many partners to give their best to a company he believed in and was passionate about. I once participated in a round table discussion with him - I found him to be genuine, knowledgeable and the embodiment of what Starbucks should be at the executive level. He deserves every penny of that $600,000.

[newyorkmcgee]

RE: A/C

My old store in nyc had a horrific air conditioner. Every summer it would break down...every summer we would have horrible days. Finally i had enough. I wrote a very polite, but stern letter to my manager. I basically outlined how much of a problem it was. How it over taxes the refrigerated equipment, how that then breaks down. How the rtd is worthless, and how it makes partners, myself included, very very ill. I also mentioned that out of concern for my safety and health, and that of my partners i would immediately lock up and close the store if the temp was over 93 degrees on the thermostat.

He faxed the letter to the regional office. Within weeks we had an entire new unit installed. (of course the unit over the backline was left broken and unused...but still it made a huge difference.) Too bad the first full summer they used it, i moved out west.

Highlight the health issue. Mention its effects on other equipment and how expensive it can get, and dont be afraid to say "i cannot work in these conditions, and you cannot ask me to."

[truth]

Make an anonymous call to the local health dept.

Those infrastructure issues will get fixed in no time.

[Cut Out The Heart]

I am sure that Jim was shown all the courtesy and respect my friend was shown when asked to take his severance and depart the building. I bet if you ask Jim, he would much rather be a member of the Starbucks team and not take the "hush money" he was given.

My prediction is that Cliff Burrows and Martin Coles will be with Starbucks less then 2 years after having to deal with the Cybil personality of Howard Schultz. I am not buying the visionary description that is often attached to him. That boat has left the dock. The rumours of him dressing down people in front of their peers is disheartening. With all of the quality people who have recently left, can anyone tell me what the common denominator could be? You got it...the visionary himself. Anyone left today is all about not telling Howard what he wants to hear even though he says he wants to them to do so. I read in an article on WSJ website that he told a partner that said he didn't like the art on the wall in his store to go ahead and change it. His advice was to ask for forgiveness and not permission. Well that is all fine and well when Howard likes what you are doing but if he doesn't, well watch out for the wrath. Jim Alling got money but for having to put up with Howard's quirky personality, he was grossly underpaid.

[psk]

Jim Alling always came across as an intelligent, insightful and humorous individual. It's disappointing that the rest of the executive team at Starbucks didn't fight to keep him.

I guess it's a little less disheartening to know you were laid off in good company despite the fact that Jim Alling seems to have gotten a disproportionately generous severance.

Good luck to Starbucks. I mean that sincerely. However, I do hope there is an unmanageable pile of tasks to be completed in place of my gracious colleagues, who also no longer have a place to call "work." My management team handled our lay offs with exceptional grace and concern, but I do hope that they see the value in the work that was done by the now former partners.

[Authentic Barista]

Whether or not this type of severence package is standard for those in his position is irrelevant at this point. What about the baristas who are losing their positions? We haven't been given much information about what to expect other than a 30 day notice, however the 30 day promise hasn't held true for most of the partners whose stores are about to close. They should offer us a month pay and/or extend our benefits for a quarter, or at least offer the benefits at our current contrubiting rate. Let's be honest here... Baristas really are the heart of Starbucks. Who else would take on a hectic job that pays $7.20/ hr.? This is the lowest paying job I've had in the last 13 years, but actually enjoy the job itself. In all honesty, most educated people aren't going to hussle to get a totally customized 11 beverage order for a drug rep out in 3 minutes. My store is consistently ranked #1 in the region according to customer voice and, without a team of good baristas, Starbucks would be nothing more than expensive coffee, espresso beverages, smoothie, frap-selling store. All of this talk about appreciating our partners is anything but genuine. It's not our fault the economy has caused losses and the company makes bad choices in placement of stores due to a lack of research, so TRULY man up and help out those of us who are going to stay until the end - for our customers, ourselves, and our managers.

[Authentic Barista]

I was just informed our store will close at the end of the month. So much for a 30 day notice! Thanks for the "considerate" and "genuine" Green Apron leadership!

[SSC Hasbeen]

Jim was a great guy, sorry to see him go. When there is no place for someone of his qualities, then the culture is truly gone.

And the "rumors" of Howard's behavior at the SSC are not "rumors" at all. They are eye-witness accounts. Very loud, very humiliating, F-bombs and all, doesn't matter who is standing around. When he's chewing somebody out, he really pours his heart into it.

[z12]

"When he's chewing somebody out, he really pours his heart into it."

Good one, SSC Hasbeen!

And a real shame. Go Peltz.

[drive]

WHY did Jim Donald get twice the severance of Jim Alling?

The bigger your failure, the bigger your severance when you're fired? Is that how it works?

[it'snotcoffee]

The word in the southeast is, that Starbucks will very soon be bought out by some bigwig from Wendy's who just purchased a whole lot of starbucks stock.

[Coffee Mistress]

WENDY'S!!! For the love of all that is good in this world....PLEASE let this be another false rumor.

[Chad]

I've had enough.

I'm enthusiastically satisfactorily not showing up from now on.

Peace!!

[Longtime SBUX Fan]

Wendy's was just bought out by the owner of Arby's, so I don't think Wendy's will be acquiring anyone anytime soon.

[Brian]

As these packages go, $600K is nothing. They must have had something on him.

It's very unfortunate that Jim Alling is no longer with the company. I've met him a few times and found him to be the most genuine and approachable executive out of anyone I've met, including Howard, Orin, Jim Donald, and Howard Behar. Can't comment on his abilities, but I do think his departure (as with many others) is another telling sign of the direction this Company wishes to go.
Truly a very interesting and inspiring person, and I don't get fooled by others' attempts to seem genuine very easily.
The Wendy's comment could be the biggest lump of BS I've ever heard. Sounds like people are confused about Nelson Peltz.

[A Starbucks Defector]

So, we have to ask, why can't he talk about what went on. I am tired of hearing Howard say " this is not the company he once knew". I'm sorry but who was sitting on the board when these decisions were made like expanding to 30,000 stores, expanding the food options, producing movies ( what a flop)and so and so on. We are so quick to praise him for coming and being this savior, but did he once in the last 6 years say at a shareholders meeting that Sbux was growing to fast? Did he say no to breakfast sandwiches when the board had to apporve it ( He is and was chariman right?)? Did he say no to producing or supporting a movie which took the attention of the barista's off coffee and had them peddling a movie? And did he say no to making the stores look more like Blockbusters with cd's and dvd's when he was accepting grammy's and hob knobbing with Hollywood? Think not. Do not get me wrong, I like Starbucks and at one time loved Starbucks but to see all the experience and life in the company be removed because one man views them as being the reason his company no longer looks like the one he once knew is simply crazy. For all the loyal Howard supporters, ask yourself one easy question. What was he doing when all these decisions were being made? Seems no one will ask or did ask him that for the last 6 years. One last note. Orin is not walking through that door to save him again.

[Cut Out The Heart]

Great points Defector. Howard seems to have become the John Edwards of the business world. A bit too full of himself. I love his old school leadership style of taking credit when things go well and passing blame when things go wrong. He is a master marketer in that he only accepts responsibility if there is a microphone in his face. When the public glare is off, seems that it is confirmed that his head spins and he spits green pea soup at his loyal charges. When has it been acceptable by anyone to drop fbomb's in a corporate setting? Why won't anyone that has been subject to this type of behavior call it out in a lawsuit? It is disapointing to me that the company that has been so often used as the symbol of great employment practices is really only the smoke and mirrors of profits. Now that profits are down, the true behaviors are being exposed.

[just so ya know]

Jim Alling was just hired as COO at T-Mobile USA, Inc.

[T-Mobile]

Jim is now COO at T-Mobile! Met him today and he is very cool, very down to earth and we are lucky to have him!

[buy viagra]

that's not surprising. starbucks will throw money at things like this, but scrimp on stuff that matters. the company is going down the drain.

[javagirl666]

Loved Jim Alling.