Starbucks CEO to earn under $10k salery in 2009.

[Bob Hubbard]

"We are moving swiftly to adapt our business to the realities of the current environment," said Howard Schultz, Starbucks' president and chief executive.
For his part, Schultz will have his salary reduced to below $10,000 this year from $1.2 million last year. And the company said it will retain only one corporate plane.

Nice to see I might make more than an international CEO this year.
They've still got more planes than me though.

Starbucks to close 300 stores as profit tumbles

The coffee chain reports fourth-quarter results below forecasts and announces 6,700 more job cuts.

Sounds bad, and it is, but the stores closing are poor performers.

Starbucks would not provide a financial forecast for upcoming quarters, blaming current economic uncertainty. However, the company said it plans to open 95 new stores next year, which is 100 less than it opened in 2008.

by comparison, McD is planning to open 1,000 new stores in 2009. Can we say Big Mac Attack?

Full article: http://money.cnn.com/2009/01/28/news/companies/Starbucks_earns/index.htm

 

[redantstyle]

cheap eats is one business that will do well in the foreseeable future.

should've bought stock.

 

[tellner]

Good for Starbucks! That is the kind of responsible action I wish, not to single anyone out, that the CEOs of Merril and AIG would engage in.

 

[Gordon Nore]

My heart sinks whenever I hear of people being laid off. As I've mentioned before, my wife and I were laid off within three months of each other back in the nineties. It's a rough ride.

As for this...

Schultz said the company plans to start "pushing back on misconceptions about our affordability."

...apparently it's just my imagination that I pay more for a large black coffee at Starbucks than I do at McDonald's or Tim Horton's.

 

[Tames D]

Hmmm, 10K salary for the year with a $1.1 million bonus at years end?

 

[terryl965]

Well the bonus is there just in case, I feel sorry for all those employees.

 

[stickarts]

Its sad to walk through the mall and see more and more stores shutting down.

 

[MJS]

Like it was already said, I hate to see anyone get layed off. On the other hand, its things like a mega paycheck and multiple jets, that doesn't help. You get the people who work behind the counter, who I'm sure are making min wage, and these jokers in the head office collecting enough to last the average person a few lifetimes. And then they have the nerve to complain when they have to take a pay cut and their store are closing. Go figure.

 

[shesulsa]

My sis-in-law has been in on those board of director meetings as the accounting controller. She says the general discussion goes something like this:

"We didn't make our minimum this year? Well, I want my bonus for the yacht I'm buying ... who are we going to lay off?"

Funny thing about coffee ... as expensive as a cup at Starbucks gets, it still runs around a quarter at my house.

 

[girlbug2]

Not to hijack the thread too much, but as far as I'm concerned, Starbucks is the devil.

1. They use metal filters, which allow caffeisol into the brew. (That's a bad cholesterol, btw, which paper filters remove).

2. Even a one cup a day habit, times each customer, adds up to a huge increase in landfill every year.

3. A one cup a day habit easily costs a customer over a thousand dollars per year. I can think of better uses for a thousand bucks, such as retirement and/or college savings.

Think of all the money, environment and cholesterol saved if we all just brewed our coffee at home like in the good old days.

 

[Bob Hubbard]

I think a company like McD though contributes much more the the landfill problem, esp since their burgers have a half life comparable to uranium.

 

[Carol]

Hmmm, 10K salary for the year with a $1.1 million bonus at years end?

Ding ding ding we have a winnah!

 

[Xue Sheng]

I think a company like McD though contributes much more the the landfill problem, esp since their burgers have a half life comparable to uranium.

Also McDonalds tends to do better in depressed areas and depressed economies so I would expect them to expand.

But there was a comic that I heard years ago that said you could burry a McNugget in a landfill and 100 years later someone who dug it up would say "Hey!!!, look a McNugget"

 

[Xue Sheng]

Hmmm, 10K salary for the year with a $1.1 million bonus at years end?

And this of course does not include his "EXPENSE ACCOUNT(S)"

 

[Bob Hubbard]

Actually, from what I know of the guy, he's the type to tighten his belt and slug it out with everyone else. My guess is, he's got enough in the bank to hold him while he tries to save the company. If he saves it, give him the bonus, it was earned.

 

[Cryozombie]

Indeed, those Bonuses are often based on performance, and even if not, if you consider it this way:

He has a, what, million dollar salary AND a million dollar bonus, and he forgoes the salary and keeps the bonus, he still took a million dollar pay cut AND saved the company that million dollars. He could have simply said "I dont think I should lose my salary, lets fire a thousand more workers, screw those baristas!"

And he DIDN'T. There is honor in that.

 

[Steve]

Not to hijack the thread too much, but as far as I'm concerned, Starbucks is the devil.

1. They use metal filters, which allow caffeisol into the brew. (That's a bad cholesterol, btw, which paper filters remove).

2. Even a one cup a day habit, times each customer, adds up to a huge increase in landfill every year.

3. A one cup a day habit easily costs a customer over a thousand dollars per year. I can think of better uses for a thousand bucks, such as retirement and/or college savings.

Think of all the money, environment and cholesterol saved if we all just brewed our coffee at home like in the good old days.

Just to play devil's advocate, while the dessert drinks like the mochas and such are terribly unhealthy, even a grande latte is better for you than a soda.

They encourage use of personal, reusable cups by offering a $.10 per drink discount, that adds nothing to the landfill. Instead of blaming them, we need to examine our own behavior. It's the "lead the horse to water" situation. Paper is better than styrofoam and the sleeves they use are much better than doublecupping.

And how one uses his or her own personal funds is specious and has to do more with personal accounting and accountability than Starbucks. That same thing could be said about absolutely any non-essential purchase.

I think there are many reasons to not like starbucks, but I'm not sure I agree with any of the ones you listed. I do agree with you that brewing at home is the way to go, but only because coffee out of my vacuum press is better than anything... except perhaps a fresh cup of coffee made in their new Clover machine. Mmmmm.

 

[Xue Sheng]

except perhaps a fresh cup of coffee made in their new Clover machine. Mmmmm.

buy whole bean

Grind it yourself - course grind

Buy a french press

put in the coffee

add boilng water

let sit for a few minutes

push the plunger

and experince the best cup of coffee you ever had (Or at least that's my opinion )

 

[Bob Hubbard]

Heres some pro and con info on Starbucks environmental record
http://www.organicconsumers.org/articles/article_12293.cfm

 

[Steve]

buy whole bean

Grind it yourself - course grind

Buy a french press

put in the coffee

add boilng water

let sit for a few minutes

push the plunger

and experince the best cup of coffee you ever had (Or at least that's my opinion )

Debatable. Vacuum press coffee is very similar, although there are some very distinct differences in the final cup. Not quite as robust as french press, but you get no sediment and it's much, much more consistent. I've tried both. Have you? If not, do yourself a favor and try it.

The final product out of a vacuum press is smooth and clean, without any bitterness. The physics of the pot practically guarantee consistently excellent coffee. And it's fun to watch.