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## Starbucks Shareholders Approve New Executive Compensation Plan

(Bloomberg) — Starbucks Corp. shareholders recently gave the green light to a revised compensation plan for its executives, including a shift away from having a bonus tied to DEI goals. The new structure, approved at the annual meeting on March 13, replaces the previous bonus tied to diversity, equity, and inclusion goals with a more general workforce target. Additionally, more compensation will now be tied to financial performance.

The revised plan, which garnered a 92% approval from shareholders, eliminates a specific DEI goal from the 2023 compensation package that previously allocated 7.5% of executives’ bonuses. This decision underscores Starbucks’ commitment to addressing concerns from shareholders.

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The company’s equality, social, and governance goals will now be integrated into a long-term incentive program, accounting for approximately 25% of bonuses. Notably, the updated plan no longer references DEI in its language, opting instead for a more inclusive term, “talent.” This shift reflects Starbucks’ dedication to fostering a diverse and inclusive workplace environment.

Starbucks has also reaffirmed its commitment to inclusion and diversity by setting specific targets to achieve racial and ethnic diversity across corporate and manufacturing roles. By maintaining these goals within its compensation structure, Starbucks demonstrates its ongoing efforts to promote diversity and equity within the organization.

In light of recent controversies surrounding executive compensation tied to DEI goals, conservative activists have scrutinized these incentives, citing concerns about potential hiring biases. However, companies like Starbucks are taking proactive measures to address these issues and enhance transparency in their compensation practices.

By incorporating feedback from shareholders and industry experts, companies can adapt their compensation plans to reflect evolving trends in corporate governance. Implementing changes based on shareholder input can enhance transparency and accountability, ultimately fostering trust among stakeholders.

Overall, Starbucks’ decision to revamp its executive compensation plan underscores the importance of aligning incentives with long-term business objectives. By embracing a more holistic approach to compensation, companies can drive sustainable growth and create value for both shareholders and employees.

–With assistance from Saijel Kishan and Clara Hudson.

(Updates story with company comment in the sixth paragraph)

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