Ritch Allison
STARBUCKSAbout Ritch Allison
Ritch Allison, age 57, has served as an independent director of Starbucks since 2019. He is the former CEO of Domino’s Pizza and a Bain & Company partner, with deep global restaurant and operations experience and an MBA from UNC’s Kenan-Flagler, where he sits on the Board of Advisors .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Domino’s Pizza, Inc. | Chief Executive Officer and Director | 2018–2022 | Led global brand growth; senior advisor until retirement in 2022 |
| Domino’s Pizza, Inc. | President, Domino’s International | 2014–2018 | Expanded into 20+ countries; grew by 8,000+ stores |
| Domino’s Pizza, Inc. | EVP, International | 2011–2014 | Led international operations |
| Bain & Company, Inc. | Partner, Co-leader of restaurant practice | 2004–2010 | Strategy and operations across QSR; 13-year tenure at Bain |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| Kenvue, Inc. | Director | 2023–present | Current public company directorship |
| Domino’s Pizza, Inc. | Director | 2018–2022 | Prior public company directorship |
| UNC Kenan-Flagler Business School | Board of Advisors | Ongoing | Advisory role; alma mater MBA |
Board Governance
- Independence: The Board determined all nominees except the CEO are independent; Allison is independent under Nasdaq rules .
- Committee assignments: Chair, Compensation and Management Development Committee; Member, Audit and Compliance Committee .
- Audit Committee financial expert: Allison designated as an audit committee financial expert under SEC rules .
- Committee activity (FY2024): Audit Committee held 10 meetings; Compensation Committee held 5 meetings .
- Attendance: Each incumbent director attended at least 75% of Board/committee meetings in FY2024; all directors attended the 2024 Annual Meeting .
- Shareholder engagement: Independent directors and committee chairs participated in nearly 30 investor meetings with holders representing 42% of shares outstanding .
| Governance Attribute | Detail |
|---|---|
| Independence status | Independent |
| Committees | Compensation (Chair); Audit & Compliance (Member) |
| Audit financial expert | Yes |
| FY2024 meetings held | Audit 10; Compensation 5 |
| Board attendance policy | ≥75% required; met in FY2024 |
| Executive sessions | Held at each regular Board meeting for independent directors |
Fixed Compensation
| Element | Amount | How Paid | Notes |
|---|---|---|---|
| Annual retainer | $130,000 | Cash or fully-vested RSUs (director election) | Program unchanged from 2023 plan year |
| Annual equity grant | $180,000 | Fully-vested RSUs | Immediate vesting; grant dates generally in March |
| Committee chair fee (Compensation) | $20,000 | Cash or fully-vested RSUs (director election) | Chair-only fee; members do not receive fees |
| Audit chair fee (not applicable to Allison) | $30,000 | Cash or fully-vested RSUs | For Audit chair (Allison is not Audit chair) |
| Perquisites | None | — | Non-employee directors receive no perquisites |
| FY2024 Actual Director Compensation (Allison) | Amount |
|---|---|
| Fees earned or paid in cash ($) | $0 |
| Stock awards ($) | $329,979 (grant date fair value) |
| Option awards ($) | $0 |
| Total ($) | $329,979 |
| RSU grant timing | March 13, 2024 (company-wide) |
Performance Compensation
| Performance-Tied Element | Status | Notes |
|---|---|---|
| Performance-based equity for directors | None | Program excludes performance-based equity awards for directors |
| Director meeting fees | None | Committee chairs receive retainers; no meeting fees |
| Vesting | Immediate vesting of annual RSUs | Directors may defer into DSUs |
Other Directorships & Interlocks
| Company | Sector | Role | Potential Interlock/Conflict |
|---|---|---|---|
| Kenvue, Inc. | Consumer Health | Director | No related-party transactions disclosed with Starbucks |
| Domino’s Pizza, Inc. (prior) | QSR | Director/CEO | No related-party transactions disclosed with Starbucks; prior affiliation only |
- Service limits: Non-employee directors may serve on up to three other public boards in addition to Starbucks; Audit Committee service limits apply; joining other boards requires governance review for conflicts .
Expertise & Qualifications
- Skills: Environmental, Finance/Capital Allocation, Human Capital, Industry (consumer/retail/food), International operations, Public company boards, Senior leadership .
- Strategic/operational credentials: Led Domino’s global expansion (+20 countries, +8,000 stores) and Bain restaurant practice; strong operational and strategy background .
Equity Ownership
| Ownership Category | Shares/Units |
|---|---|
| Common shares owned | 10,000 |
| Options exercisable (within 60 days) | 0 |
| Outstanding options (as of 9/29/2024) | 0 |
| Restricted stock units | — (directors’ annual RSUs vest immediately) |
| Deferred stock units (DSUs) | 21,553.252 |
| Total beneficial ownership | 31,553.252 |
| Ownership as % of shares outstanding | <1% |
| Ownership guideline | 5x annual retainer ($650,000) within 5 years; all current directors compliant or on track |
| Hedging/pledging | Prohibited for directors and partners |
Governance Assessment
- Board effectiveness: As Compensation Committee chair, Allison oversees CEO pay setting, Section 16 officer compensation, incentive metrics, succession planning, peer group construction, ownership guidelines, and risk oversight—supported by an independent consultant (Pay Governance) without other engagements, enhancing independence .
- Independence and conflicts: The Board affirmed Allison’s independence; no related person transactions involving Allison were disclosed; directors receive no perquisites; anti-hedging/pledging and clawback policies strengthen alignment and risk mitigation .
- Attendance and engagement: FY2024 attendance thresholds were met; independent directors and committee chairs participated broadly in shareholder outreach, supporting investor confidence in governance responsiveness .
- Compensation structure signals: Director pay emphasizes equity with optional RSU election and immediate vesting; Allison’s FY2024 compensation was entirely in stock awards ($329,979), aligning interests with shareholders; robust ownership guidelines (5x retainer) and DSU deferrals enhance long-term alignment .
- RED FLAGS: None identified—no related-party dealings, no delinquent Section 16 filings noted for Allison, no director perquisites, and strict anti-hedging/pledging policy in place .
Compensation Committee context: FY2024 peer group spans global consumer and payments brands; FY2025 updates added American Express, Mastercard, T-Mobile, and Disney amid removal of Visa, reflecting talent market and scale considerations overseen by the committee .
Committee meeting cadence: Audit (10) and Compensation (5) meetings in FY2024 indicate structured oversight, with Allison active across financial reporting, controls, and human capital/compensation governance .