Starbucks Corp. shareholders rejected the coffee company’s executive compensation proposal, a rare rebuke to a major U.S. company.
The plan voted down by Starbucks shareholders Wednesday includes millions of dollars in bonus and retention pay for Starbucks’ chief executive, though the resolution was nonbinding and may not affect executives’ compensation.
Only 10 S&P 500 companies have had shareholders reject annual say-on-pay resolutions in the last year, according to ISS Corporate Solutions, an executive compensation consulting firm run by investment adviser Institutional Shareholder Services.
The compensation proposal for the company’s executives included a one-time bonus award to CEO Kevin Johnson of $1.86 million for its 2020 fiscal year. Starbucks’s board also agreed in late 2019 to provide Mr. Johnson with a three-year retention bonus of up to $50 million if he helped to boost the company’s stock to established targets and remained at Starbucks through the end of its 2022 fiscal year.Starbucks Shareholders Reject Executive Pay Proposal – WSJ