Starbucks executives will not receive raises

Source: Food and Drink Digital

Date :8/28/2008 12:48:29 AM

Howard Schultz and other executives at Starbucks Corp will not receive raises next fiscal year in a bid to return to profit.

The company posted its first quarterly loss last month and has recently announced a spate of store closures.

Employees were informed of the pay freeze in a memo on Monday, August 25, which includes everyone at the US vice presidential level and above. The freeze is effective from September 29.

Head of human resources, Chet Kuchinad, said that US store managers, assistant store managers, retail-management trainees, district managers and most hourly roasting plant employees will be eligible for a 3.5 percent salary increase.

Other eligible employees below the vice presidential level will receive a two percent flat salary increase.

Kuchinad warned that the global economic environment remains extremely uncertain as the chain lowered its targets for opening international stores.