That’s a lot of lattes!

June 23, 2004

Starbucks (SBUX) filed an amended K earlier today for the fiscal year that ended last September just because it had underestimated the moving and relocation expenses for two of its executive hires. The expenses for former Pathmark executive James Donald — was only off by about $23,000. But the moving and relocation expenses for Dave Pace were about twice as much as Starbucks initially disclosed in its earlier K. Pace, 44, who had been president of Dallas-based I2 Technologies (ITWO.PK) soaked Starbucks for $351,143 in moving and relocation expenses in fiscal 2003, compared with the $175,704 the Seattle-based company initially disclosed. That’s nearly as much as Pace’s $400K base salary and is in addition to the $57,000 Pace rang up in fiscal 2002. Since there doesn’t appear to be an employment contract or agreement between Pace and Starbucks included in the company’s SEC filings, it’s hard to tell what the terms of reimbursement were. But many companies tend to set some sort of cap.

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