Schultz’s Starbucks base pay will drop to $1 in April

SEATTLE — Howard Schultz’s base salary will be reduced to $1 once he steps down from his Starbucks CEO position next month.

That’s certainly less than the $1.5 million in base salary he earned last year.

But no need to fret for the billionaire. He’s still got a bonus target of $3.75 million when he steps into the role of executive chairman starting April 3, according to a filing with the Securities and Exchange Commission. That’s equivalent to his prior bonus target as CEO.

Schultz will also receive an equity award valued at $750,000, vesting over several years.

Last year, Schultz made $21.8 million in total compensation, which, in addition to the base salary, also included a $3.19 million cash bonus for reaching certain goals, $16.9 million in stock and option awards tied to long-term company performance, and $219,000 in other compensation.

Kevin Johnson, Starbucks’ president and chief operating officer, who steps into the CEO role April 3, will earn a base salary of $1.3 million as CEO, according to the SEC filing.

That’s up from his base salary last year of $1 million.

Johnson’s bonus target as CEO is being increased to 200 percent of his base salary, or $2 million. He’ll also be granted a promotional equity award valued at $800,000.

Johnson made $11.1 million in total compensation last year. In addition to his base salary, that included $1 million cash incentive bonus, $8.5 million in stock and option awards, $500,000 sign-on bonus, and $24,000 in other compensation.