SESSION 5.1
Help Employees Get the Biggest Bang
for their Buck, Yen, Euro:
Effective Participant Communications
A Starbucks Case Study
Billy Vitense
Director, stock, Starbucks Coffee Company
Michelle Lundquist
Director, Communications Consultant, Fidelity Investments
SESSION 5.4
Help Employees Get the Biggest Bang for their Buck, Yen, Euro:
Effective Participant Communications
A Starbucks Case Study
Billy Vitense
Director, stock, Starbucks Coffee Company
Michelle Lundquist
Director, Communications Consultant, Fidelity Investments
Your Presenters
Moderator:
Presenter:
Michelle Lundquist
Billy Vitense
Director, Communications Consultant
Fidelity Investments Stock Plan Services
Director, Stock
Starbucks Coffee Company
Starbucks Coffee Company
Starbucks purchases and roasts high-quality whole
bean coffees and sells them along with fresh, richbrewed, Italian style espresso beverages, a variety of
pastries and confections, and coffee-related
accessories and equipment – primarily through our
Company-operated retail stores.
Starbucks: facts and figures
Founded
 1971 Pike Place Market in Seattle, Washington
Folklore
 Starbucks is named after the first mate in Herman Melville’s Moby Dick
Mission
 To establish Starbucks as the purveyor of the finest coffee in the world
while maintaining our uncompromising principles as we grow
 Total store count: 16,706 as of 12/26/2009
  All 50 States plus D.C.
  6,769 Company Operated Stores
  4,412 Licensed Stores
  48 Countries outside the U.S.
  2,081 company-operated stores
  3,444 joint venture /licensed stores
 North American Partner Count: 123,280 as of 12/29/09
Starbucks Coffee Company
“It’s personal – one moment, one human
being, one cup at a time. This is our
belief.”
“We are not in the coffee business serving
people we are in the people business
serving coffee”
Starbucks Coffee Company
Equity-Based Compensation
  Bean Stock, our broad-based Stock Option plan
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Over 93,000 partners in 16 countries + 1 U.S Territory
1st grant in 1991 before going public
Grant annually, based on company performance
  Key Employee Equity Plan – Stock Option and Performance RSUs
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Approximately 600 partners
Generally, director & above
Grant to new hires, promotions monthly and annually
  ESPP – 423 Plan
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5% discount on date of purchases
Quarterly purchases
US and Canada
  Non-Employee Director Plan
Starbucks Coffee Company
“With Bean Stock’s introduction, we
turned every employee of Starbucks
into a Partner. I wanted them to
have a chance to share in the
benefits of growth, and to make
clear the connection between their
contributions and the growing value
of the company.”
“Ultimately, Starbucks can’t flourish and win customers’ hearts
without the passionate devotion of our Partners. In business,
that passion comes from ownership, trust and loyalty.”
Howard Schultz, chairman, president and ceo
Starbucks Coffee Company
Purpose of Bean Stock
 Links shareholder value with long-term rewards for our partners
 Encourages ownership of Starbucks stock
 Provides incentive for partners to contribute and share in Starbucks
success
What our partners say about Bean Stock
“Bean Stock motivates you. It drives
you in your own personal growth
because you see that you’re part of
a bigger picture, part of a corporation
that gives back to you and rewards
you for what you do every day.
It definitely drives you to want to
grow in the company and share it
with others.”
- Jennifer Gatti, store manager,
Hackensack
Starbucks and the First Shot….
Focus on providing a targeted message at
the exact time a Partner message is needed.
 Emails from Corporate – @ grant, @ vest, @ tax time.
 On site visits to Equity Markets.
 Streamlined Partner communications
  CD that includes all languages, custom, translated cover letter for
each Market, as needed.
What’s inside those Grant packets?
Bean Stock Grant
Summary
This page is a summary of the
year’s grant information and also
lists what else is in the pack.
A cover letter from
Howard Schultz that
thanks you for all your
hard work.
Bean Stock Brochure
that will help you make
sense of your Bean
Stock.
What’s inside those Grant packets?
Stock Option Grant
Agreement: This
shows the number of
stock options the
partner’s been
allocated this time and
how much each will
cost when exercised.
Partner
Information
Supplement for
Stock Options:
This tells partners
about some of the
possible tax and
legal requirements
in your country
which may apply to
their stock options.
Starbucks
Corporation
2005 CompanyWide Sub-Plan: a
legal document
which defines the
rules, procedures
and guidelines
around the Bean
Stock program.
Prospectus: A Plan
Summary for the
Starbucks
Corporation 2005
Company-Wide
Sub-Plan: Additional
information about the
plan including helpful
questions and
answers.
Fidelity and the Second Shot…
Quick Start approach
 Fidelity communication format mirrors Starbucks
  CD format utilized to help Partners get started
•  Library of information for ongoing reference
 At award, log in and get activated
  Provide step-by-step log in and activation instructions
Drip communications
 Messaging timed for when Partners need to take action
 Right message, right time
  Target communications to event
  Activation
  Award acceptance
  Vesting
  Expiration
 Translate key pieces of information where Partners have the most confusion
•  Understanding tax consequences
•  Bank wire information
Results
Partner Loyalty
 Better understanding of award
 Appreciation of benefit
 Comprehend how it fits into overall Total Pay package
Internal Efficiencies
 HR and Store managers spend less time with last minute “fire drills”
 Create an internal knowledge database with HR managers and key
contacts in the Markets
 “Train the Trainer” approach
Challenges
Sustaining education is a constant challenge in a retail
environment
New generation of partners
 Social media; Facebook, Twitter, YouTube, Skype, etc, etc.
Ease of finding tools and resources
 Portal
 External web pages
 Lack of email for retail partners
Q&A
Important Information
Fidelity Investments and/or Fidelity Stock Plan Services are not affiliated with
Starbucks Coffee Company
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street,
Smithfield, RI 02917
546508.1.0