Your Grant Vested

As your Bean Stock vests, the units become shares of Starbucks stock. Here’s what happens next.

Vesting

Vesting is basically a waiting period during which you must remain employed by Starbucks without any breaks in service. Bean Stock vest over a two-year period – 50% on the first anniversary of the grant date and 50% on the second anniversary.

Taxes

The value of the shares you receive is based on Starbucks closing stock price on the vest date. This is how your gain (taxable income) is determined.

Depending on where you work and/or live, you may be required to pay income tax on this gain. If taxes are due, Starbucks will withhold taxes 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 account shortly after the vest date.

At vesting, Starbucks is responsible for reporting the taxable income to the tax authorities. The taxable income will also be reported through payroll, and the amount of tax withheld in shares will be detailed on your pay statement.

Partners who have been granted RSUs while employed by Starbucks in other countries may have additional taxes that need to be withheld through local payroll at the time of vesting.

Tax-Withholding Example:
This example is for illustrative purposes only.

Let’s say you received 10 RSUs. One year later, the first 50% (5 units) vest.
Tax-Withholding Graphics_300dpi-01
Tax-Withholding Graphics_300dpi-02
If the closing price is $60 on the vest date, your gain (taxable income) would be $300.

  • 5 shares x $60 = $300

If your tax rate is 35%*, the tax due would be $105.

  • $300 x 35% = $105

Two shares** would be used to cover the taxes due and the remaining three shares would be deposited into your Fidelity account.

Tax-Withholding Graphics_300dpi-04
Since only $105 was due, you would get $15 back through your next paycheck.

Tax-Withholding Graphics_300dpi-03
If you hold these shares, the value in your account may go up or down depending on Starbucks stock price.

* The example shows estimated tax withholding. For your own personal situation, we encourage all partners to consult with their own tax adviser with respect to local tax consequences in regards to taxation of RSUs at the time of vest.
** Shares will be rounded up to the nearest whole share, and any residual from the netting of shares will be refunded to you through payroll.