Starbucks CEO paid US$11.5m for his first year

[NEW YORK] Starbucks paid chief executive officer Kevin Johnson US$11.5 million for last year, when he succeeded founder Howard Schultz, whose salary was cut to US$1 as part of his transition to chairman.

Mr Johnson, 57, who took the helm of the coffee chain in April, received US$5.91 million in restricted stock and stock options valued at US$3.92 million, according to a regulatory filing Friday. He also got US$1.15 million in salary and a US$470,000 bonus.

The CEO has focused on fixing Starbucks's mobile-ordering technology, which caused backups at pickup counters last year, and emphasised the importance of increasing the chain's presence in China, as he fights slowing sales growth in the US and abroad. Mr Johnson's bonus paid out below target after the company missed goals for operating income.

Shares of Seattle-based Starbucks tumbled 4.2 per cent Friday, the most in six months, a day after posting disappointing results in all of its major regions. The stock fell less than one per cent in the fiscal year ended Oct 1, trailing the 16 per cent advance for the S&P 500 Index.

Starbucks said this week it plans to spend US$250 million on new employee benefits, including expanded paid parental leave for most of its hourly workers and paid sick days, in the wake of the US tax overhaul. The company also announced raises for 150,000 hourly and salaried US employees.

Mr Schultz, 64, received US$18 million in total compensation, including equity awards and a cash bonus.

BLOOMBERG