Starbucks’s structure allows that decisions prioritize shareholder value and stick to clear, fair measures. An example of this commitment is by maintaining all independent directors as board of Directors, which allows for clear oversight of management decisions.
These board members are chosen with strict selection and intentionality. The board member selection process is done by the Nominating and Corporate Governance Committee, which screens candidates at length and selects those with high skill, experience, and diversity. A board member of Starbucks must align fully with the mission and culture of the company.
Another way they align with Shareholder values is by having pay for high employees tied to specific measurable performance metrics. This ensures executives strive to increase value to the company. Some of these metrics include EPS, Environmental impact indicators, Sales Revenue and Customer and Employee satisfaction. Both of these key components allow for an increase in long term value for the company.
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