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Originally published May 8, 2008 at 12:00 AM | Page modified May 8, 2008 at 8:32 PM

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Starbucks' former CEO promises not to work for McDonald's or Dunkin' Donuts

Starbucks' former chief executive, Jim Donald, will be paid $1.25 million this year as long as he doesn't violate confidentiality and noncompetition agreements with the Seattle-based coffee company.

Seattle Times business reporter

Starbucks' former chief executive, Jim Donald, agreed not to work for McDonald's or Dunkin' Donuts as part of a noncompetition agreement he signed after being pushed out of the coffee company in January.

He can work for a grocery chain and other fast-food chains, including Wendy's and Burger King, according to a securities filing by Starbucks today. But McDonald's and Dunkin' Donuts "directly compete with Starbucks field of business."

In return for signing the noncompetition and confidentiality agreements, Donald will receive $1.25 million this year, an amount that Starbucks made public in January.

Today's filing said that Donald also agreed not to make derogatory or disparaging comments to the press or anyone about Starbucks, its shareholders and employees. Starbucks' board and principal officers cannot make such remarks about Donald, either.

Launi Skinner, who was president of Starbucks' U.S. operations, also signed confidentiality and noncompetition agreements when she left in March. She received a full year's salary, although that amount was not disclosed publicly, along with outplacement services worth up to $14,000 from the firm Lee Hecht Harrison and a Starbucks Partner Card entitling her to merchandise discounts for life.

Starbucks also disclosed compensation for three executives, including Arthur Rubinfeld, a former Starbucks executive who was rehired as president of global development.

Rubinfeld received a signing bonus of $200,000 after he came aboard in February. His salary this year is $450,000, plus a "minimum target" bonus of $292,500 and 145,000 stock options, which would be worth about $2.3 million based on today's stock price.

Chet Kuchinad, who was promoted to executive vice president of partner resources, will receive a salary of $400,000, a bonus that could equal half his salary, and stock options worth $400,000.

Cliff Burrows, who was promoted to Skinner's former position as head of U.S. operations, will receive a $595,000 base salary, a bonus that could equal 65 percent of his salary, and stock options worth $250,000.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com

Copyright © 2008 The Seattle Times Company

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