Starbucks Corporation (NASDAQ:SBUX)’s strong performance last year meant that its top executives were well on course to receive hefty bonuses as part of the executive management bonus plan. The giant coffee maker posted a 35% increase in its earnings per share last year, as revenues grew by 17% to highs of $19.16 billion.
Starbucks Impressive Performance
The stock was also a big performer having gained nearly 50% in market value and continues to show relative strength amidst the ongoing rout in the markets. Sales of $5.4 billion in the first quarter beat earnings expectations by a penny a share. Profit for the quarter was up by 30% to highs of $687 million.
Sales growth continues to be sparked by a 4% increase in global customer traffic. Same-store sales in the US are also doing well having grown by 9% in the recent quarter. However, a sales growth of 5% for the China and Asia Pacific segment continues to raise concerns about stunted growth in the region.
CEO Compensation Package
Factoring in the impressive run, CEO, Howard Schultz, compensation package stood at $20.1 million slightly lower than his 2014 package of $21.5 million. His non-equity incentive compensation plan rose to $4 million from $2.9 million a year earlier. Base salary, however, remained at $1.5 million supplemented by $7.5 million worth of stock awards and $6.9 million in option awards.
Schultz was not the only executive to walk home with an impressive pay package. Starbucks Corporation (NASDAQ:SBUX) says other executives were well compensated above their targets. Investments in mobile technology continue to fuel growth for the coffee maker as more people smartphones.
The company says that 22% of all transactions in the US in December were made using mobile apps, up by 1% from November levels.
Strong sales in the holiday season sparked by Christmas merchandise sales all but helped Starbucks Corporation (NASDAQ:SBUX) post better than expected first quarter earnings. However, investors are a worried lot the company having issued a below par outlook for the current quarter. The company expects to make between 38-39 cents a share this quarter, way below what the Street expected.
