Brady Brewer
STARBUCKSAbout Brady Brewer
Brady Brewer serves as chief executive officer, Starbucks International, effective April 1, 2024, after previously leading global marketing as executive vice president and chief marketing officer . In FY2024 Starbucks reported consolidated net revenues of $36.2B (+1% YoY), operating margin of 15.0% (GAAP: −130 bps YoY), and GAAP EPS of $3.31 (−8% YoY), providing the performance backdrop for Brewer’s transition to lead international growth and execution . His FY2024 individual objectives emphasized product innovation, digital adoption, international revenue and margin, and supply chain initiatives, with measured outcomes driving his incentive payout .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Starbucks | CEO, Starbucks International | Apr 2024–present | Delivered Q3 results to forecast with cost mitigation; launched international supply chain revamp; strengthened licensee relationships; advanced Starbucks Digital Solutions adoption and global brand-building . |
| Starbucks | EVP, Chief Marketing Officer | Pre–Apr 2024 | Launched brand campaigns and revenue management; new products and digital experiences; improved customer connection and brand affinity, supporting sales and innovation . |
External Roles
- No external public company board roles or other directorships disclosed for Brady Brewer in the latest proxy .
Fixed Compensation
| Metric | FY2023 | FY2024 |
|---|---|---|
| Base Salary (Annualized) | $730,000 | $775,000 |
| Target Bonus (% of Base) | 100% | 100% |
| Other Compensation ($) | — | $116,245 (includes annual physical $3,400, executive disability premium $2,160, tax equalization support $92,126 related to prior international assignment) |
Performance Compensation
| Component | FY2024 Design | Target/Payout | Vesting/Notes |
|---|---|---|---|
| Annual Incentive (Cash) | 75% financial (adjusted net revenue and adjusted operating income); 25% individual performance factor | Financial achieved 14% of target; IPF achieved 83.3%; total payout 31.3% of target; Bonus earned $242,833 | Financial thresholds/targets set ex-ante, linear interpolation for payouts; IPF based on strategic, operational, and team goals . |
| PRSUs (FY2024 annual cycle) | Earned on 3-year adjusted EPS with ±25% rTSR modifier, ±10% talent, ±10% sustainability modifiers | FY2024 grant: 2,368 target units; 9,470 max; vest based on 3-year performance | Payout ranges 0–200% of target subject to modifiers; employment condition at settlement except qualifying events . |
| Time-based RSUs (FY2024 annual cycle) | 4-year ratable vesting at 25% per year | FY2024 grant: 18,939 units | Subject to continued service; qualifies for retirement/termination treatments per plan . |
| Prior-cycle PRSUs (FY2022 grant) | 3-year adjusted EPS with rTSR/talent modifiers | Cycle paid at 42.75% of target; Brewer vested 8,484 units in Nov 2024 | Settlement followed Compensation Committee certification; continued employment condition met . |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial Ownership (Shares) | 29,869.541 as of Jan 10, 2025 |
| Outstanding Time-based RSUs (Unvested) | 12,759 (11/18/2022 grant) + 19,303 (11/14/2023 grant); market value $1,242,216 and $1,879,340 respectively at $97.36 close |
| Outstanding PRSUs (to-be-earned) | 25,518 (FY2023 cycle) + 7,239 (FY2024 cycle); payout value shown at target $2,484,432 and $704,789 at $97.36 |
| Ownership Guidelines | Executives must hold a multiple of salary; unvested time-vested RSUs count; all current NEOs exceed requirements as of proxy date |
| Hedging/Pledging Policy | Prohibits hedging and pledging; no current executive officers/directors (or immediate family) have pledged shares |
Employment Terms
| Provision | Terms (Executive Plan) |
|---|---|
| Severance (without cause, outside CIC) | Cash severance 1.5x base + target bonus; prorated bonus based on actual financial performance (assume 100% IPF); lump sum equal to 18 months COBRA; outplacement up to $25,000; continued vesting of equity granted post Aug 31, 2022 (prorated by service) . |
| Change-in-Control (double trigger) | Cash severance 2x base + target bonus (CEO 2.99x); prorated bonus greater of target or actual; accelerated vesting per plan (post‑Aug 31, 2022 awards fully vest; performance-based vest at target if termination on/before end of performance period) . |
| Potential Severance Values (Illustrative at FY2024 YE) | Termination without cause: Cash $2,567,833; COBRA $39,960; Outplacement $25,000; PRSUs/RSUs continued vest $3,811,161 . CIC double-trigger: Cash $3,875,000; COBRA $39,960; Outplacement $25,000; PRSUs/RSUs vest $11,390,438 . |
| Clawback | Recovery of incentive compensation policy extends beyond Dodd-Frank; applies to cash/equity for misconduct or non-restatement miscalculations . |
| Tax Gross-ups | Company policy: no excise tax gross-ups on change in control . |
Compensation Structure
| Element | FY2023 | FY2024 | Change |
|---|---|---|---|
| Annual LTI Target Value | $4,000,000 | $5,000,000 | +25.0% |
| Stock Awards (Grant Date Fair Value) | — | $4,814,831 | — |
| Annual Incentive Earned | — | $242,833 | — |
- FY2024 annual incentive weighting increased to 75% financials and 25% individual performance; FY2025 LTI simplifies with a new 50% three-year average global comp store sales metric and 50% adjusted EPS, removing talent and sustainability modifiers and revising rTSR to payout ranges, aligning with “Back to Starbucks” priorities .
Performance & Track Record
- H1 2024 (CMO): Launched product innovations (apple croissant, bakes, apple crisp shaken espresso, pumpkin/gingerbread chai; lavender drinks), brand affinity campaigns, and digital features (Grubhub, Mobile Order & Pay labels, wait-time accuracy) to support sales and experience .
- H2 2024 (International CEO): Delivered Q3 on forecast with agile cost moves, initiated international supply chain revamp, prioritized licensee engagement and Starbucks Digital Solutions adoption against corporate hurdle rates .
- Company FY2024 backdrop: Net revenues +1%, global comp sales −2% (transactions −4%, ticket +2%), GAAP/non-GAAP operating margin contracted to 15.0%, GAAP EPS −8% (non-GAAP −6% YoY) .
Compensation Peer Group & Say-on-Pay
- Peer Group (FY2024): Coca‑Cola, Colgate‑Palmolive, General Mills, Kraft Heinz, PepsiCo, Procter & Gamble, Kimberly‑Clark, Mondelez; Chipotle, Estée Lauder, Keurig Dr Pepper, McDonald’s, Nike, Target; PayPal, Visa .
- Say‑on‑Pay Support: Approximately 92% approval at 2023 Annual Meeting; FY2024 program changes simplified IPF and maintained shareholder engagement focus .
Risk Indicators & Governance
- Anti-hedging/pledging policy and robust clawback mitigate misalignment risks .
- Executive stock ownership guidelines with confirmed compliance for current NEOs support alignment .
- No repricing/cash-out of underwater options without shareholder approval; no pension/SERP plans; no dividend payments on unvested awards .
Investment Implications
- Alignment: Brewer’s meaningful unvested RSUs/PRSUs and strict no‑pledging policy tie personal outcomes to sustained TSR and EPS/comp sales performance; current NEO compliance with ownership guidelines reduces agency risk .
- Retention/Pressure: Continued vesting upon certain terminations offers retention value; severance multiples (1.5x/2x) are market-comparable and avoid excessive guarantees; cash incentive down-weighted via performance under FY2024 results (14% financial factor) underscores pay-for-performance discipline .
- Execution: FY2025 LTI shift toward comp sales and simplified modifiers should sharpen operational accountability across international markets Brewer oversees, potentially improving estimate momentum if execution meets the redesigned scorecard .