Results tagged “starbuckscorporation”

It makes perfect sense for a company that just suffered a gigantic drop in profit (and one that has been struggling all year) to give its new Chief Financial Officer, the one who will preside over the books during its downward spiral, a big fat paycheck. Troy Alstead, the incoming CFO for Starbucks Corporation, will be paid an annual salary of $450,000. But wait, there's more: he also receives eligibility for a $225,000 bonus and a stock option grant worth over $200,000. So, let's get this straight: the company is struggling for its life, facing continuously decreasing profit, and the head money man could get paid nearly $900,000 a year. Is it no wonder the numbers coming out of the Mermaid are so dismal?

We were sure it was just a typo, a major one, in a headline by the Associated Press: "Starbucks profit down 97% in the 4th Quarter." Surely there's just an extra 7 in that number...? But no. Starbucks stock was only earning a penny a share after last quarter, largely due to the cost of closing under-performing stores. Starbucks swears if you took out the cost of closing stores, which we thought was supposed to save the company money, not cost it more, the stocks would actually have earned ten cents a share. Still, none of the numbers sound good to us.