Strategic Organizing Center Issues Statement on ISS Recommendation
February 29 2024 - 7:45PM
Business Wire
The Strategic Organizing Center (the “SOC”), a shareholder of
Starbucks Corporation (Nasdaq: SBUX) (“Starbucks” or the
“Company”), today commented on the recent report published by
Institutional Shareholder Services Inc. (“ISS”) in relation to
Starbucks’ upcoming Annual Meeting of Shareholders (the “Annual
Meeting”). The Annual Meeting is scheduled for March 13, 2024.
The SOC stated:
“While ISS acknowledged the validity of a number of our
arguments in its report, we disagree with the view that board
change is not currently needed at Starbucks. As ISS points out,
Starbucks ‘mishandled’ its response to its employees’ campaign for
unionization and, as a result, has materially damaged the
reputation the Company previously enjoyed as a progressive
employer. ISS also concurs that shareholders should be concerned by
Starbucks’ share price performance since unionization efforts
began. However, in our view, ISS’ analysis of the link between this
underperformance and the Company’s reliance upon illegal tactics in
its human capital management strategy ignores what is plainly
evident: Starbucks’ Board should be held accountable for endorsing
a response to unionization that destroyed shareholder value.
Further, we agree with ISS that the recent announcement of
Starbucks and Workers United committing to a path forward is
meaningful progress. That said, the fact remains that the actions
the Company has taken are reactive. For this reason, we feel it is
still important to add independent oversight to the Starbucks Board
in order to ensure the Company follows through on its commitments.
Our three exceptionally qualified nominees – Maria Echaveste, Hon.
Joshua Gotbaum and Hon. Wilma Liebman – bring diverse leadership
experience from within the business, government and non-profit
sectors and can provide the perspectives and expertise Starbucks
needs now.
We encourage shareholders to help send the message that it is
time to Brew a Better Starbucks by voting for our director
candidates today. We look forward to continuing to engage with our
fellow shareholders in advance of the Annual Meeting.”
In its report, ISS noted the following:1
- “Although SBUX has weathered controversies about unionization
in the past, its image as an employer has faced greater scrutiny
than ever since the unionization movement began.”
- “By its own admission, the board was caught off-guard and
mishandled the initial response. This translated into
negative media attention, which led to SBUX being recast
from a progressive employer into an embodiment of the
frustrations faced by many retail workers.”
- “…the initial response by SBUX to unionization efforts
translated into reputational damage…”
- “The key in this proxy contest is uncovering the role that
unionization matters have played in the divergence [between
long-term and short-term performance].”
- “A business like SBUX cannot function without employees, so
there is necessarily a link between labor and
performance.”
- “Perhaps most importantly, SBUX and Workers United recently
committed to start discussions on a foundational framework designed
to achieve collective bargaining agreements, and SBUX will provide
union-represented partners with previously-announced benefits that
they have not been able to take advantage of to date. This appears
to be a major step forward for all involved.”
Shareholders can be part of ensuring Starbucks returns to the
right path for the future by using the BLUE proxy card – to vote “FOR” each of
the SOC Nominees today. Shareholders can also vote for the SOC
Nominees on the Company’s White proxy card.
Visit www.BrewABetterStarbucks.com for additional information
about the SOC’s campaign, including how to vote your shares
TODAY.
***
DISCLAIMER
This material does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities described
herein in any state to any person. In addition, the discussions and
opinions in this press release and the material contained herein
are for general information only, and are not intended to provide
investment advice. All statements contained in this press release
that are not clearly historical in nature or that necessarily
depend on future events are “forward-looking statements,” which are
not guarantees of future performance or results, and the words
“will,” “anticipate,” “believe,” “expect,” “potential,” “could,”
“opportunity,” “estimate,” and similar expressions are generally
intended to identify forward-looking statements. Any projected
results and/or statements contained in this press release that are
not historical facts are based on current expectations, speak only
as of the date of this press release and involve risks that may
cause the actual results to be materially different. Certain
information included in this press release is based on data
obtained from sources considered to be reliable. No representation
is made with respect to the accuracy or completeness of such data,
and any analyses provided to assist the recipient of this press
release in evaluating the matters described herein may be based on
subjective assessments and assumptions and may use one among
alternative methodologies that produce different results.
Accordingly, any analyses should also not be viewed as factual and
also should not be relied upon as an accurate prediction of future
results. Any figures are unaudited estimates and subject to
revision without notice. The SOC disclaims any obligation to update
the information herein and reserve the right to change any of their
opinions expressed herein at any time as they deem appropriate.
Past performance is not indicative of future results.
IMPORTANT INFORMATION
The SOC, the SEIU, Mary Kay Henry, Ahmer Qadeer, Michael Zucker,
Maria Echaveste, Joshua Gotbaum, and Wilma B. Liebman
(collectively, the “Participants”) filed a definitive proxy
statement and accompanying proxy card (the “Proxy Statement”) with
the SEC on January 25, 2024 to be used to solicit proxies in
connection with the 2024 annual meeting of shareholders (the
“Annual Meeting”) of Starbucks Corporation (the “Company”). All
shareholders of the Company are advised to read the Proxy Statement
and other documents related to the solicitation of proxies, each in
connection with the Annual Meeting, by the Participants, as they
contain important information, including additional information
related to the Participants, including a description of their
direct or indirect interests by security holdings or otherwise. The
Proxy Statement and an accompanying BLUE proxy card will be
furnished to some or all of the Company’s stockholders and is,
along with other relevant documents, available at no charge on the
SEC website at http://www.sec.gov.
_________________________ 1 Permission to quote ISS neither
sought nor obtained. Emphasis added.
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Investor Contact Okapi Partners Bruce Goldfarb / Pat
McHugh, (877) 285-5990 info@okapipartners.com
Media Contacts Longacre Square Partners
soc-sbux@longacresquare.com
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