On March 4, 2025, Starbucks Corporation announced the appointment of Cathy R. Smith as executive vice president, chief financial officer and designated Smith as the Company’s principal financial officer and principal accounting officer, effective, in each case, as of a date to be determined.
Smith, age 61, joins Starbucks from Nordstrom where she has served as executive vice president, chief financial officer and treasurer since 2023. From 2020 to 2023, Smith served as chief financial and administrative officer for Bright Health Group. From 2015 to 2020, Smith served as the chief financial officer for Target Corporation. Previously, Smith served as chief financial officer for Express Scripts from 2014 to 2015, for Walmart International from 2010 to 2014, for GameStop from 2009 to 2010, for Centex from 2006 to 2009, for Kennametal from 2005 to 2006, for Textron from 2003 to 2005, and for Raytheon from 1986 to 2003. She currently serves on the board of directors at PPG Industries and Baxter International. Previously, Smith served as a director for Dick’s Sporting Goods.
Smith holds an undergraduate degree from the University of California, Santa Barbara and an MBA from the University of Southern California. In connection with Smith’s appointment, Smith and the Company executed an offer letter on February 27, 2025.
Pursuant to the Offer Letter, Smith will receive an initial base salary of $925,000 per year and an annual cash incentive opportunity at a target of 125 percent of base salary, which will be prorated for fiscal year 2025, and is consistent with the compensation paid to our prior chief financial officer. Smith will forfeit approximately $15 million in cash incentive and equity awards in connection with her departure from her prior employer. In consideration of her forfeited cash incentive opportunity and equity awards that would have vested within the next twelve months, to induce her to join Starbucks, and consistent with Starbucks general compensation practices for executives,
Smith will receive a cash signing bonus of $5,000,000; 50 percent of such amount will be paid on the next payroll date following the one-month anniversary of the Effective Date and the remaining 50 percent will be paid on the next payroll date following the twelve-month anniversary of the Effective Date, in each case, subject to Smith’s continued employment with the Company through the applicable payment date.
If Smith’s employment is terminated by the Company without cause or upon her death or disability, Smith will be entitled to receive any unpaid portion of the signing bonus within thirty days of her employment termination date. In consideration of her forfeited long-term cash incentive opportunity and long-term equity awards that would have vested beyond the next twelve months and to induce her to join Starbucks, Smith will also receive a replacement equity grant with a target value of $6,400,000. Further, to align. Smith with Starbucks fiscal year 2025 long-term annual incentive program and in respect of her forfeited long-term cash incentive opportunity and long-term equity awards that would have vested beyond the next twelve months, Smith will receive a fiscal year 2025 annual equity award with a target value of $4,500,000, which amount is also consistent with the compensation paid to our prior chief financial officer.
Each of the Replacement Grant and the 2025 Annual Grant will consist of 60 percent performance-based restricted stock units and 40 percent time-based restricted stock units. The vesting of each of the Replacement Grant and the 2025 Annual Grant will continue in the event Smith’s employment is terminated by the Company without cause. Smith is expected to participate in the Company’s previously disclosed Executive Severance and Change in Control Plan. Smith will also be entitled to the Company’s standard relocation benefits for senior executives and participate in employee benefit plans and programs provided by the Company to other senior executives. Smith will also be subject to the Company’s restrictive covenants agreement, which includes restrictions relating to noncompetition, non-solicitation, and protection of confidential information.
On March 4, 2025, the Company also announced that Rachel Ruggeri would no longer serve as the Company’s executive vice president, chief
financial officer and principal financial officer and principal accounting officer, effective, in each case, as of a date to be determined. Ruggeri’s separation from the Company meets the conditions of the “without cause” provisions of the Company’s Executive Severance and Change in Control Plan for purposes of all plan benefits thereunder.
There are no arrangements or understandings between Smith and any other person pursuant to which she was appointed as chief financial officer and designated as principal executive officer and principal accounting officer.
