Starbucks employees get a Trump bump to salary and benefits
Employees of Starbucks are in line for bonuses, stock options and enhanced benefits after the coffee chain said it would make savings from US tax cuts.
The move will cost more than $250m (£176.5m) and will be extended to 150,000 workers in the US.
The company follows the likes of Walmart and Apple, which have both given employees a cut of the tax savings made under the new regulations. Yesterday, JP Morgan said it would hike wages as a result of the legislation.
It is not clear how much Starbucks is likely to save under President Trump’s sweeping tax changes.
Of the savings, $120m will go towards increasing the hourly wages of eligible employees in line with the regional cost of living.
All retail workers will also receive a $500 stock grant and store managers will gain $2000 in stock, while non-retail workers will receive variable amounts. Starbucks said this plan would be worth $100m.
Chief executive Kevin Johnson said: “The value of Starbucks’ benefit package [fully accessed] is unmatched by other retailers and provides thousands of dollars above the value of other companies compensation offerings.
“I am extremely proud to share that in the past four years Starbucks has made an investment of nearly $800m in employee compensation and benefits—a testament to our belief in our people and the role they play in creating the Starbucks experience.”
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