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With the announcement, the world's biggest coffee chain joins
companies like Walmart <WMT.N>, Apple Inc <APPL.O>, Comcast Corp
<CMCSA.O> and American Airlines Group Inc <AAL.O> in sharing
their tax savings with employees.
Starbucks is known for giving its workers, which it calls
"partners," more generous pay and benefits than other
mass-market restaurants and retailers.
"Investing in our partners has long been our strategy, and due
to the recent changes in U.S. tax law, we are able to accelerate
some significant partner investments," Chief Executive Kevin
Johnson said in a letter to employees.
Starbucks declined to say how much it expected its tax bill to
drop under the new plan, and said executives would give details
on its earnings call on Thursday.
Credit Suisse analyst Jason West recently estimated that
Starbucks' global tax rate could fall to about 24-25 percent
from around 33 percent, which would drive roughly $425 million
in annual tax savings.
Seattle-based Starbucks said it will give hourly and salaried
employees, who received pay raises in January, a second wage
increase in April.
It is giving additional stock grants to eligible employees on
April 16. Coffee shop workers will receive a grant of at least
$500 and store managers will receive $2,000 grants.
Starting July 1, all employees will accrue paid time off to care
for themselves and loved ones when they are ill. Starbucks said
the national benefit was designed to match or exceed the
benefits some partners were already due under existing city or
state-mandated paid sick leave laws.
Starbucks also expanded its parental leave policy for cafe
workers, giving non-birth parents up to six weeks of paid leave
when welcoming a new child.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Himani
Sarkar)
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