FAQ: 2018 Bean Stock
Questions and answers
Questions and answers
Bean Stock has always been about partners sharing in the success of the company. While stock price isn’t the only measure of our success, an increase in stock price directly impacts the value of the Starbucks shares that partners may receive from their Bean Stock.
There is no need to enroll – you are eligible for Bean Stock if you were employed by Starbucks as of May 1, 2018 and are in a position up to, but not including, the director level.
Each year, Starbucks Board of Directors evaluates our company performance and takes into consideration our strategic and financial goals for the coming year to determine the economic values for that year’s Bean Stock.
Your Bean Stock may vary year-to-year based on your job (retail) or annualized salary (non-retail) on the last day of the fiscal year and the closing price of Starbucks stock on the grant date. The number of Bean Stock RSUs you receive is calculated by taking the economic value of the grant and dividing it by the closing price of Starbucks stock on the grant date.
Whenever you want to know the current value of your Bean Stock, just take the number of RSUs and multiply it by Starbucks current stock price.
Bean Stock is granted in the form of restricted stock units, or RSUs, which give you the right to receive a specified number of shares of Starbucks stock upon satisfaction of the vesting period. When your RSUs vest, you receive one share of Starbucks stock for each RSU (less taxes, if applicable in your country).
Vesting is basically a waiting period during which you must remain employed by Starbucks without any breaks in service. Bean Stock vests over a two-year period. 50% of the grant vests on the first anniversary of the grant and the remaining 50% vests on the second anniversary. As your Bean Stock vests, you receive shares of Starbucks stock that you can either sell or hold.
When Bean Stock vests, depending on where you work and/or live, you may be required to pay taxes on the market value of vested shares. Starbucks will satisfy any tax-withholding obligations by reducing the number of vested shares equal to the amount of tax you owe. This is referred to as “netting of shares”. The remaining shares will be deposited in your Fidelity stock plan account shortly after the vest date.
When you receive your first Bean Stock grant, you will automatically be set-up with a Fidelity stock plan account at netbenefits.com. If eligible, you will be notified in early December when your Bean Stock grant is viewable in your account.
Starbucks has a long history of investing in partners through Bean Stock. It is important for you to know the value of your Bean Stock and how the plan works. You must activate your stock plan account (pdf) and accept your grant (pdf) to receive proceeds from your Bean Stock.