Putting his money where his mouth is

[rhu]

From the WSJ:

[Starbucks's] CEO Howard Schultz asked the company's board of directors last week to reduce his annual base salary to $10,000, from $1.2 million, a move the board approved, according to a company spokesperson. Once his health-care coverage costs are deducted from his salary, Schultz will earn less than $4 a month.

Comments

[mabfan.livejournal.com]

Where will the money go? Into other salaries, one hopes.

[tinhorn2.livejournal.com]

If this turns out to have a material, bottom-line impact for him, then kudos. I note, though, that he earned $8.5 million in non-salary benefits last year. He also has not been paid a bonus in 2 years -- if the board gives him a million-dollar bonus this year (whether it will do so remains to be seen), when it otherwise would not have, then this turns out to be mere bookkeeping (or might even be a plus, depending on tax treatments). But, as I said, if this ends up having a material impact, then kudos to him.

[cellio]

Once his health-care coverage costs are deducted from his salary, Schultz will earn less than $4 a month.

Plus bonuses? (Question, not assertion.)

[530nm330hz.livejournal.com]

Presumably. But when you're laying off workers, taking a 99% cut in base pay is a potent symbol.

[hatam-soferet.livejournal.com]

So he'll live happily on the interest from his savings. Still, on the whole, good for him. He gets cookies.

On the other hand, am I the only one who's absolutely appalled that his healthcare works out to $10K? I know that's not unusual, but this sort of highlights the obscenity.