Starbucks Hikes Employee Wages, Quieting Compensation Concerns

Roughly 150,000 Starbucks employees will be granted improved pay under Howard Schultz's new plan.

Author:: James Passeri
Publish date:: Jul 11, 2016 3:52 PM EDT

Starbucks (SBUX) - Get Report unveiled a host of changes to its employee-compensation policy Monday, including raises of at least five percent for the more than 150,000 employees and store managers at U.S. locations. Founder and CEO Howard Schultz said part of the impetus for the improved compensation packages is his vision to build what he calls 'the kind of company that my father never had a chance to work for.' The compensation changes, according to TheStreet's Brian Sozzi, will likely prove costly to Starbucks' bottom line, but could be a 'necessary evil' to settle pay complaints from Starbucks employees. Starbucks is a holding of Jim Cramer's Action Alerts PLUS portfolio.

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