Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

Providing Benefits to Our PartnersStarbucks Total Pay package is the cornerstone of our pledgeto treat partners with respect and dignity. The Total Paypackage varies by country to make sure it is locally relevant.The components may include competitive base pay, bonuses,comprehensive health coverage, income protection, vacation,stock options, a savings program, adoption benefits, tuitionreimbursement and partner perks, including a discount onmerchandise in our stores.Pay at Starbucks reflects the knowledge, skills and experiencerequired for a specific job. We regularly consult industrysalary surveys to determine competitive rates, and payaccordingly. Partners are also eligible for merit pay increasesbased on performance.The chart below summarizes the core benefits that our eligiblepart- and full-time partners receive.Starbucks BenefitsPARTNER BENEFITSComprehensive healthcare benefits(U.S. and Canada)Bean Stock – Starbucks stockoption plan (eligible partners inthe U.S., Canada, UK, Hong Kong,Netherlands, Switzerland, Germany,Australia, Costa Rica, China,Thailand, Singapore, Chile, Republicof Ireland and Puerto Rico)S.I.P. – Stock Investment Plan (U.S.and Canada), Share Incentive Plan(UK)Future Roast – Starbucks 401(k)Plan (U.S.), RRSP – RegisteredRetirement Savings Plan (Canada)PROGRAM DESCRIPTIONSAND COVERAGEBenefits include medical, dental, vision,prescription drugs and alternative health coverage.In the U.S., Starbucks paid 77 percent of healthcoverage costs for partners and 60 percent fordependents. In Canada, 73 percent of costs werepaid for partners and 45 percent for dependents.The board of directors determines annual stockoption grants based on company performance upto 14 percent of our partners’ eligible base wages.Every partner through the director level receivesthe same percentage of his or her fiscal-yearwages. For fiscal 2006 performance, the basis forstock option grants was 14 percent.Partners can purchase company stock at adiscounted price on a quarterly basis (U.S. andCanada) or a semiannual basis (UK).Starbucks matches from 25 percent to 150 percent(based on the length of service from the partner’smost recent date of hire) on the first four percentof pay that partners contribute to the U.S. 401(k)Plan. Eligible Canadian partners receive a 25percent match on the first four percent of pay thatthey contribute to the RRSP.ELIGIBILITYOnce initially eligible, full- and part-time partners whoare paid a minimum of 240 hours per calendar quarterand their eligible dependents, including spouses,domestic partners and children. In fiscal 2006, 65percent of U.S. partners and 61 percent of Canadianpartners were eligible for these benefits.*Full- and part-time partners up through director levelwho have been employed by Starbucks since April1 and have been paid for at least 500 hours fromthe first of the fiscal year through March 31 or fromApril 1 through the end of the fiscal year. (Eligibilityrequirements may vary slightly by country.) More than70,000 partners qualified for Bean Stock for fiscal2006 performance.Partners who have worked as a regular Starbuckspartner for at least 90 days and have been paid for anaverage of 20 hours a week during the three monthspreceding the offering. No hours requirement in theUK. In fiscal 2006, 32 percent of eligible U.S. andCanadian partners participated in S.I.P.U.S. partners age 18 or older may participate after thecompletion of 90 days of service. Canadian partnersare eligible after one year of service. In fiscal 2006,21 percent of eligible U.S. partners participated inFuture Roast. Sixteen percent of eligible partners inCanada participated in the RRSP.*With approximately four company-operated stores opening daily in the U.S. and Canada, we have a large number of partners in their eligibility waiting period,typically three months.Partner Benefits – InternationallyWhile specific benefits differ between regions and countries,all of our international business partners share StarbucksTotal Pay philosophy. Below are several representativeexamples of benefits received by Starbucks partners outsideNorth America.• Japan: All partners who work 30 hours per month ormore are eligible for health insurance including annualmedical checkup. Stock and annual leave (vacation) arealso offered.• Chile: All partners are eligible for health insurance, paidvacation and sick leave, among other benefits.• Greece: All partners are eligible for health insurance, paidvacation and sick leave, among other benefits.• China: All eligible partners receive health insurance, sickleave and maternity leave.• Australia: Bean Stock, paid vacation, sick leave and careertraining are among the benefits offered.W O R K P L A C E66