Form 4: Starbucks Officer Sara Kelly Boosts Stake with RSU Grants

Starbucks EVP Sara Kelly reported the acquisition of 18,856 shares through RSU grants and performance achievements, alongside a tax-related disposition, increasing her total beneficial ownership to 65,223.0073 shares.

Summary

• Sara Kelly, EVP, Chief Partner Officer of Starbucks Corp (SBUX), reported changes in her beneficial ownership of common stock.
• On November 10, 2025, 60.145 shares of common stock were withheld by Starbucks at a price of $84.6 per share to satisfy tax withholding obligations upon the vesting of restricted stock units.
• Following this transaction, Kelly's direct beneficial ownership was 46,367.0073 shares, which included 46.898 shares purchased on September 30, 2025, via the Employee Stock Purchase Plan.
• On November 11, 2025, Kelly acquired 4,970 restricted stock units (RSUs) at a price of $0, earned due to the achievement of performance goals from a grant made on November 18, 2022. These RSUs are scheduled to vest on November 18, 2025.
• Also on November 11, 2025, Kelly was granted an additional 13,886 restricted stock units at a price of $0. These new RSUs will vest in four increments: 3,472 shares each on November 11, 2026, and November 11, 2027, and 3,471 shares each on November 11, 2028, and November 11, 2029.
• After all reported transactions, Kelly's direct beneficial ownership of Starbucks common stock increased to 65,223.0073 shares.

Sentiment

Score: 7

Explanation: The filing indicates a significant increase in beneficial ownership for a key executive through RSU grants and performance-based awards, reflecting continued alignment with shareholder interests and confidence in the company's future. This is a positive, albeit routine, sign.

Positives

• Sara Kelly acquired a total of 18,856 shares through RSU grants and performance achievements, indicating continued equity participation and alignment with shareholder interests.
• The earning of 4,970 RSUs demonstrates the achievement of performance goals, reflecting positive operational or strategic outcomes for the company.
• The new grant of 13,886 RSUs provides a long-term incentive for the executive, tying future compensation to company performance over several years.

Future Outlook

The executive's future compensation includes significant equity awards with vesting schedules extending through November 2029, aligning her incentives with the company's long-term performance and shareholder value creation.

Industry Context

This filing reflects standard executive compensation practices within large, publicly traded corporations, where equity awards like Restricted Stock Units (RSUs) are a common tool to incentivize management and align their interests with long-term shareholder value. Such practices are prevalent across various industries, including the consumer discretionary sector where Starbucks operates.

Comparison to Industry Standards

• The executive compensation structure, involving performance-based and time-vesting restricted stock units, is consistent with common practices among large, publicly traded corporations in the consumer discretionary sector, such as McDonald's or Coca-Cola, which utilize equity awards to align executive incentives with long-term shareholder value.

Related Party Transactions

• The RSU grants to Sara Kelly, an executive officer, represent standard compensation arrangements between the company and its management, aligning executive incentives with company performance.

Stakeholder Impact

• Shareholders: Increased alignment of executive interests with long-term shareholder value through equity ownership and performance-based incentives.
• Employees: The executive's continued equity participation may signal confidence in the company's future, potentially impacting employee morale.

Next Steps

• Vesting of 4,970 RSUs on November 18, 2025.
• First increment vesting of 3,472 shares from the new RSU grant on November 11, 2026.
• Second increment vesting of 3,472 shares from the new RSU grant on November 11, 2027.
• Third increment vesting of 3,471 shares from the new RSU grant on November 11, 2028.
• Fourth increment vesting of 3,471 shares from the new RSU grant on November 11, 2029.

Key Dates

Recommendation

This Form 4 details routine executive compensation activities, including RSU grants and vesting, which do not alter the fundamental investment outlook for Starbucks. The increase in beneficial ownership by a key executive is a positive sign of alignment but does not warrant a change in investment recommendation based solely on this filing.

Keywords

Starbucks, SBUX, Form 4, Insider Transaction, Restricted Stock Units, Executive Compensation, Equity Grant, Beneficial Ownership