Beyond the cup. - Starbucks

Caring for Our PartnersOne of the best demonstrations of how we care for our partners is through Starbucks Total Pay package, which includes competitivebase pay, bonuses, a comprehensive health plan, paid time-off plans, stock options, a savings program and partner perks. In fiscal2005, adoption benefits were enhanced to include paid time off for new adoptive parents and up to $4,000 in reimbursement forqualified adoption expenses. Also, our tuition reimbursement benefit was extended to partners in Canada.The chart below summarizes the core benefits our eligible part- and full-time partners receive.Starbucks BenefitsPARTNER BENEFITSComprehensive healthcare benefits(U.S. and Canada)Bean Stock – Starbucks stock option plan(eligible partners in the U.S., Canada,UK, Hong Kong, Netherlands, Switzerland,Germany, Australia, Costa Rica)PROGRAM DESCRIPTIONSAND COVERAGEBenefits include medical, dental, vision,prescription drugs and alternative healthcoverage. In the U.S., Starbucks paid 75 percentof health coverage costs for partners and 56percent for dependents. In Canada, 74 percent ofcosts were paid for partners and 46 percent fordependents.The board of directors determines annual stockoption grants based on company performanceup to 14 percent of our partners’ eligible basewages. Every partner through the director levelreceives the same percentage of his or herfiscal-year wages. For fiscal 2005 performance,the basis for stock option grants was 14 percent.ELIGIBILITYOnce initially eligible, full- and part-time partnerswho are paid a minimum of 240 hours per calendarquarter and their eligible dependents, includingspouses, domestic partners and children. In fiscal2005, 67 percent of U.S. partners and 62 percent ofCanadian partners were eligible for these benefits.Full- and part-time partners up through director levelwho have been employed by Starbucks since April 1and have been paid for at least 500 hours from thefirst of the fiscal year through March 31 or from April1 through the end of the fiscal year. More than 57,000partners qualified for Bean Stock for fiscal 2005performance.S.I.P. – Stock Investment Plan (U.S. andCanada), Share Incentive Plan (UK)Future Roast – Starbucks 401(k) Plan(U.S.), RRSP – Registered RetirementSavings Plan (Canada)Partners can purchase company stock atdiscounted prices on a quarterly basis (U.S.and Canada) or a semiannual basis (UK).Starbucks matches between 25 percent and 150percent (based on the length of service frommost 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 paythat they contribute to the RRSP.Partners who have worked as a regular partner atleast 90 days for Starbucks and have been paid for anaverage of 20 hours a week during the three monthspreceding the offering. No hours requirement in theUK. In fiscal 2005, 32 percent of eligible U.S. andCanadian partners participated in S.I.P.Full- and part-time partners with one year of serviceare eligible. In the U.S., partners age 30 or older mayparticipate immediately.Partner Benefits – InternationallyWhile specific benefits differ between regions and countries,all of our international business partners share Starbucks TotalPay philosophy. Below are several representative examples ofbenefits received by Starbucks partners outside North America.• Some of the partner benefits in China include healthcareinsurance, sick leave and maternity/paternity leave, and insome areas tuition reimbursement is provided for partnersand their children.• In Malaysia and Thailand, partners are given advancedtraining opportunities to further their careers, in additionto health insurance, paid vacation, sick leave andother benefits.• New Zealand partners have access to a registered workplacetraining program, which is free of charge and enables themto gain nationally recognized qualifications.• Our business partner in Turkey provides partners withtransportation subsidies and access to a company doctorwho treats partners free of charge.68WORKPLACE