Today, Starbucks (SBUX - Free Report) CEO Howard Schultz sent a message to all US employees, announcing that there will be a few more perks that come with working for the coffee giant. Starting October 3rd, the company will increase the base pay of its US store managers and workers by at least 5%. The magnitude of the raise will vary depending on store location and market factors.
Starbucks is known for being competitive with regards to how well it treats its talent. This new move may put additional pressure on fellow peers within the food and coffee space to offer better pay and benefits for employees.
Howard Schultz’s letter also mentions a future upgrade to its stock awards program for workers. The program, known as Bean Stock, is expected to double stock awards for workers who have been with the company for at least two years. It is worth noting that the company attempts to make annual upgrades to Bean Stock, and that the level of compensation through the program increases depending on Starbucks’ financial performance.
Starbucks has done very well for itself over the years, and since 2005, the corporation has gone from being in the top 400 of the Fortune 500 to being within the top 200. If Starbucks continues to churn out high levels of income, its employees stand to reap more benefits in the form of better pay and benefits.
Mr. Schultz’s letter indicates that there will be some new options open to employees within the company’s health program. Now, employees will have more flexibility to choose a health plan which fits their needs. Starbucks has an interactive tool that helps employees with finding an insurer and health plan that meets their financial and healthcare needs. The corporation believes that the customization of health benefits will allow its workers to save up to $800 per year. Employees using family coverage could save even more, and Starbucks estimates that workers under this plan could see potential savings of up to $2600 per year.
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