Business Context and Reporting Period
This Form 8-K Current Report was filed by Starbucks Corporation on June 4, 2025. The filing discloses significant changes to the Company's executive leadership team, specifically the appointment of a new Chief Operating Officer and the departure of the Chief Legal Officer.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on personnel changes and associated compensation adjustments.
Material Changes
- Appointment of COO: Mike Grams, previously EVP and North America Chief Coffeehouse Officer, was appointed Chief Operating Officer (COO), a reinstated position. He will now oversee global coffeehouse development and the global supply chain in addition to North American operations.
- Compensation Adjustment: Mr. Grams' base salary increased from $700,000 to $900,000 annually. His annual incentive bonus target increased from 100% to 125% of base salary. Both changes are prorated for fiscal year 2025.
- Departure of CLO: Brad Lerman will cease serving as EVP and Chief Legal Officer on a date to be determined. He will remain in the role until a successor is identified.
- Severance Terms: Mr. Lerman's separation qualifies as "without cause" under the Company's Executive Severance and Change in Control Plan, entitling him to all applicable plan benefits.
Guidance, Outlook, and Risks
The filing includes a letter from Chairman and CEO Brian Niccol regarding the leadership changes (Exhibit 99.1). No financial guidance, forward-looking outlook, or specific risk factors were disclosed in this report. The filing notes there are no undisclosed arrangements or family relationships involving Mr. Grams that require disclosure.
Investor Verification Checklist
- Verify the exact effective date for Brad Lerman's departure as a Chief Legal Officer.
- Review the specific terms of the "without cause" severance package applicable to Mr. Lerman in the Company's Executive Severance and Change in Control Plan.
- Monitor future filings for the appointment of a successor to the Chief Legal Officer role.
- Assess the strategic impact of consolidating global supply chain and development oversight under the new COO.