Howard Schultz

benefits that would in a way uh take the company in direction no one's ever been in before and so early on we started talking about exceeding the expectations of our people so they can exceed the expectations of the customer and the first time we actually were able to manifest that was a year before the ipo and and that was an incredible struggle because i had on my board

benefits that would in a way uh take the company in direction no one's ever been in before and so early on we started talking about exceeding the expectations of our people so they can exceed the expectations of the customer and the first time we actually were able to manifest that was a year before the ipo and and that was an incredible struggle because i had on my board

to venture capitalists and i was proposing something that had never been done before and that was i wanted to give equity in the form of stock options to every single employee in the company and they just said what what are you talking about we're not doing that and so the fight became ultimately we gave 14 of everyone's base pay in the form of stock options at the end of the year based on the strike price and i had to do it the year before the ipo had to so everyone wouldn't miss it

to venture capitalists and i was proposing something that had never been done before and that was i wanted to give equity in the form of stock options to every single employee in the company and they just said what what are you talking about we're not doing that and so the fight became ultimately we gave 14 of everyone's base pay in the form of stock options at the end of the year based on the strike price and i had to do it the year before the ipo had to so everyone wouldn't miss it

And I think the turning point of the culture of the company was the day we announced that and we became partners. And to the credit of Craig Foley, who was the VC, and Jamie Shannon, They believed that performance would be enhanced, attrition would be lowered, and that the brand would just elevate as a result of that. And it was true, completely true. That changed Starbucks for decades.

And I think the turning point of the culture of the company was the day we announced that and we became partners. And to the credit of Craig Foley, who was the VC, and Jamie Shannon, They believed that performance would be enhanced, attrition would be lowered, and that the brand would just elevate as a result of that. And it was true, completely true. That changed Starbucks for decades.

And along with some other events based on doing the right thing.

And along with some other events based on doing the right thing.

I mean, the healthcare for part-time workers.

I mean, the healthcare for part-time workers.

So then, you know, healthcare, I think... 25 years before the Affordable Care Act, what we did was company for health insurers. And that also, I grew up in a family with no health insurance. And I saw what happened. So all of that is that origin story of mine. And the tragedy is my father passed away and never saw what we're able to do.

So then, you know, healthcare, I think... 25 years before the Affordable Care Act, what we did was company for health insurers. And that also, I grew up in a family with no health insurance. And I saw what happened. So all of that is that origin story of mine. And the tragedy is my father passed away and never saw what we're able to do.

Do you want the stats on that initial employee stock grant? I'd love to hear it. So the program was called Beanstalk listeners that Howard was alluding to. Amazing name. In 1988, the health benefits roll out even to part-time employees, including gay couples in domestic partnerships. I believe the first of its kind. That was a 33-store company at that point.

Do you want the stats on that initial employee stock grant? I'd love to hear it. So the program was called Beanstalk listeners that Howard was alluding to. Amazing name. In 1988, the health benefits roll out even to part-time employees, including gay couples in domestic partnerships. I believe the first of its kind. That was a 33-store company at that point.

A few years later, you had grown to 55 stores. You did the LA expansion. Then in 1991, which is the year before the IPO, Beanstalk happens. Equity in the form of stock options goes out to everyone working 20-plus hours a week. There were 1,300 employees at the time. And I believe it was the first time in history that part-time employees were offered a program like this.

A few years later, you had grown to 55 stores. You did the LA expansion. Then in 1991, which is the year before the IPO, Beanstalk happens. Equity in the form of stock options goes out to everyone working 20-plus hours a week. There were 1,300 employees at the time. And I believe it was the first time in history that part-time employees were offered a program like this.

So those initial grants, the strike price was $6 per share. Today, as we speak, the share price is $77. But there have been six splits since then, which comes out to a 64x. So that initial grant has 800x'd since even the part-time employees and baristas were offered the opportunity to buy Starbucks stock.

So those initial grants, the strike price was $6 per share. Today, as we speak, the share price is $77. But there have been six splits since then, which comes out to a 64x. So that initial grant has 800x'd since even the part-time employees and baristas were offered the opportunity to buy Starbucks stock.

Yeah. A lawyer, I think Scott Greenberg at the time, came to me and said, we can't do this unless we get approval from the SEC because we're over 500 shareholders.

Yeah. A lawyer, I think Scott Greenberg at the time, came to me and said, we can't do this unless we get approval from the SEC because we're over 500 shareholders.