Zevin Asset Management, LLC, on behalf of the Claire L Bateman 1991 Trust and together with
co-filers, notified the Company that they intend to submit the following proposal at this years Annual Meeting. As explained below, our board unanimously recommends that you vote AGAINST this
shareholder proposal. The Claire L Bateman 1991 Trust has indicated that it beneficially owns 300 shares of Starbucks common stock. We will provide the address of the proponents, and the name and share ownership of each co-filer, promptly upon a shareholders oral or written request. The proponents are responsible for the content of the proposal, for which we and our board accept no responsibility.
WHEREAS: America faces a caregiving crisis. Approximately 87 percent of private sector workers in the United States do not have access to a single day of
paid family leave (Bureau of Labor Statistics, 2016). One in four new mothers returns to work just 10 days after giving birth (Chicago Tribune, May 2017).
Paid family leave promotes gender, racial, and socioeconomic equity, as well as workforce attachment and public health. According to The New York Times,
Paid leave raises the probability that mothers return to employment later, and then work more hours and earn higher wages (January 2015). Research indicates that 10 weeks of paid leave would reduce infant mortality by 10 percent
(Heymann, 2011).
Federal inaction on paid family leave has put companies like Starbucks Corporation at the center of this national policy issue. Corporate
Americas response is lopsided: 94 percent of low-income working people have no access to paid family leave (Bureau of Labor Statistics, 2016), and companies approaches are frequently less
generous for non-birth mothers and hourly wage workers.
Starbucks has a particularly unequal approach. While new mothers in
Starbuckss corporate headquarters receive 18 weeks of fully paid leave, new mothers who work in retail stores receive only six weeks. Fathers and adoptive parents who work in Starbucks stores are left out entirely.
This runs counter to Starbuckss widely recognized commitment to social responsibility, non-discrimination, and inclusion.
Our Companys unequal stance may disproportionately harm low-income workers and workers of color. LGBTQ workers face particular challenges, as they are four times more likely to parent adopted children
and six times more likely to raise foster children.
Starbucks is also missing an opportunity to bolster its human capital. According to the Center for Economic and
Policy Research, companies that offer paid family leave to all employees report increased morale, as well as cost savings from job retentionincluding for those in lower wage jobs.
Our Companys stance on paid family leave has been criticized in the media (e.g. Major employers like Starbucks shaft
low-wage workers when it comes to paid parental leave, Slate, May 2017; How paid leave policies can negatively affect LGBTQ families, Washington Post, June 2017). And Starbucks
has fallen behind leading companies like Amazon, Nordstrom, and Ikea, which have more equal approaches.
Investors seek clarity on how Starbucks addresses these
challenges, including the risk of employment discrimination based on gender, race, ethnicity, LGBTQ status, parental status, and/or work status.
RESOLVED: Shareholders of Starbucks Corporation request that the Board of Directors prepare a report on paid family
leave. The report shall evaluate the risk of employment discrimination that may result from Starbuckss approach to paid family leave. The report shall be prepared at reasonable cost, omit proprietary information, omit information regarding
legal compliance or litigation, and be made available on the Companys website no later than the 2019 annual meeting of shareholders.
Board Recommendation
The Starbucks Board of Directors recommends that shareholders vote AGAINST this proposal for the following reasons:
Starbucks strives to create a company and culture that treats partners (employees) with respect and dignity. As part of its commitment to partners, Starbucks has a long
history of offering progressive and comprehensive benefits to our partners who work 20 hours or more a week. The Total Rewards Package offered by Starbucksincluding compensation, benefits, savings, stock and perks for partnersrewards
partners for their contributions to the company. This includes:
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For more than 20 years: |
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Starbucks has provided health insurance coverage for both eligible full and part-time partners no matter what position they hold, and including coverage for those in domestic partnerships |
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Equity in the form of stock |
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Full tuition reimbursement coverage for a four-year college degree through Arizona State Universitys online degree program as part of the Starbucks College Achievement Plan |
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Permanent and temporary disability coverage; |
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Vacation, holiday and parental-leave benefits; and |
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A 401(k) plan, with company matching up to 5 percent of the partners wages. |
We believe that many of our
partners have come to work at Starbucks not only because of our culture and opportunities for career growth, but also because they qualify for our comprehensive benefits while working just 20 hours a week. This provides our diverse partners, from
working parents to students, or military spouses, with flexibility while ensuring they receive industry leading benefits. We are proud to be a leader in the retail industry, where it is commonplace for only full-time employees to receive health care
coverage. To our knowledge there are no other major retailers with a more comprehensive benefits package than the one that Starbucks offers to its partners. Our parental leave benefits also exceed what most retailers provide full- or part-time
workers. Unlike many retailers, there is no tenure requirement beyond initial benefits eligibility, which is also industry leading at 90 days. We provide up to 18-weeks of parental leave for our retail store
partners, 6 weeks fully paid time off for birth mothers and adoptive parents, and another 12 weeks unpaid for all parents, including foster and adoptive parents.
A
diverse workforce is critical to our company. We embrace diversity and inclusion because it enhances our workplace and drives our business success. Discrimination of any kind has no place in our company, as reflected in our Global Human Rights
Statement and our Equal Employment Opportunity Policy (both available through our website at https://www.starbucks.com/responsibility/learn-more/policies). We have always believed in equal treatment for all individuals, and have a long history and
commitment to supporting our diverse partners, including those in the LGBTQ community. Through