The $131.1 billion coffee giant Starbucks Corp., which is now trading close to its 52-week high of $117.46, said today that Cathy R. Smith has been appointed as its new Executive Vice President and Chief Financial Officer. On an unspecified date, Smith will start her new position at the global network of coffee shops, which brought in $36.1 billion in revenue in the previous 12 months. With a P/E ratio of 36.9x, Starbucks is now trading at premium prices, according to the media.
Smith, 61, has a long work background and offers a wealth of financial knowledge to Starbucks. He has held the position of CFO at various large companies, such as Target Corporation (NYSE:TGT), Bright Health Group, and Nordstrom (NYSE:JWN). Her background includes executive positions at Walmart (NYSE:WMT) International, GameStop (NYSE:GME), and Raytheon (NYSE:RTN), and she has experience in a variety of industries, including retail and healthcare. She joins Starbucks at a time when, although operating with moderate debt levels, InvestingPro data indicates the business is maintaining solid financial health with an overall “GOOD” rating. Get 15+ more exclusive insights on Starbucks by subscribing to InvestingPro.
Smith will start out as Starbucks’ new CFO with a basic salary of $925,000 per year, plus an annual cash incentive that is prorated for the fiscal year 2025 and aims to equal 125% of her base pay. Smith will get a $5 million signing bonus and a $6.4 million replacement equity grant to make up for the roughly $15 million in cash incentives and equity awards she forfeited by leaving her last workplace. A fiscal year 2025 annual stock award with a target value of $4.5 million will also be given to her, matching the former CFO’s salary.
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