China Finance Online has learned from a source familiar with the matter that, due to poor financial performance of Starbucks (SBUX.US), many employees of the company only received 60% of the total bonus for the company's latest fiscal year. The source said that the company's financial performance as of September 29th for the fiscal year fell below expectations, dragging down the overall compensation of many employees who had met their individual goals.

Another document shows that most Starbucks employees' bonuses are calculated based on individual performance and business results. Bonuses are typically distributed in December. The document indicates that a portion based on company performance is calculated based on revenue and operating profit. Starbucks' revenue growth for its latest fiscal year was less than 1%, compared to double-digit growth in the previous three years. Overall operating profit declined by about 8%.

The shrinking bonuses reflect the sales challenges that Starbucks has faced this year, as American customers, impacted by widespread inflation, have reduced their latte consumption. Many customers have also complained about long waiting times and inaccurate orders. Additionally, like many major American brands, this coffee giant has faced boycotts due to its stance in the Middle East conflict.

Comparable store sales for the most recent fiscal year have declined for the second time in the past 15 years, with the previous instance being in 2020 when the restrictions of the COVID-19 pandemic prevented diners from dining out. The newly appointed CEO, Brian Niccol, is trying to reverse this trend, promising to make the cafes more popular, speed up service, and help employees perform better.

Niccol stated in the company's fourth quarter earnings call: 'It's clear we need to fundamentally change our global strategy to win back customers. We have a clear plan, are taking swift action to help Starbucks regain growth.'

Documents show that in the USA, the company's bonus targets range from 5% of the basic salary for regular employees to 45% of the basic salary for senior vice presidents. The business performance has a greater impact on the compensation of senior vice presidents and above, which means that their bonuses will be more significantly affected. According to an insider, unlike employees in other positions, senior management will not receive performance bonuses.

As of the close on Monday, Starbucks' stock price has risen by about 6% this year, while the S&P 500 index has increased by nearly 26% during the same period.