Starbucks Corporation (SBUX, Financial) has announced the appointment of Cathy R. Smith as its new executive vice president and chief financial officer. Ms. Smith will also serve as the company's principal financial officer and principal accounting officer, with the effective date of her appointment yet to be determined.
Ms. Smith brings a wealth of experience to Starbucks, having previously held the position of executive vice president, chief financial officer, and treasurer at Nordstrom since 2023. Her extensive career includes roles as chief financial officer at several major companies, including Target Corporation, Express Scripts, Walmart International, GameStop, Centex, Kennametal, Textron, and Raytheon. Additionally, she serves on the board of directors at PPG Industries and Baxter International.
In her new role at Starbucks, Ms. Smith will receive an initial base salary of $925,000 per year, along with an annual cash incentive opportunity at a target of 125% of her base salary. To compensate for the forfeiture of approximately $15 million in cash incentives and equity awards from her previous employer, Starbucks has offered Ms. Smith a $5,000,000 cash signing bonus, payable in two installments, and a replacement equity grant valued at $6,400,000. She will also receive a fiscal year 2025 annual equity award with a target value of $4,500,000.
Ms. Smith's appointment follows the announcement that Rachel Ruggeri will no longer serve as Starbucks' executive vice president, chief financial officer, and principal financial officer. Ms. Ruggeri's departure is classified under the "without cause" provisions of the company's Executive Severance and Change in Control Plan.
Starbucks has expressed confidence in Ms. Smith's ability to contribute to the company's financial strategy and growth, aligning with its long-term goals and objectives.
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