Bitter taste | Starbucks slashes staff bonuses by 40% while $23m CEO payout remains intact

Starbucks employees are set to see significant reductions in their annual bonus payouts this year, a result of the coffee giant’s underwhelming financial performance, although the CEO will still get $23m.

The chain has revenue growth of less than 1% and has seen an 8% decline in operating income, factors that have directly impacted bonus calculations.

The annual bonuses, awarded each December, are calculated using a weighted formula that emphasizes company performance.

For senior executives, 70% of the bonus is tied to operating income and net revenue, while inclusion goals and individual achievements account for the remainder. For other corporate staff, the split is more balanced, with equal weight given to individual and business performance.