Starbucks Execs Cash In On Stock-Price Gain

Eight Starbucks Corp. executives are cashing in on the coffee company's national cachet and near-record stock price by selling 848,858 shares - the largest such trade-in since the gourmet-coffee purveyor went public in 1992.

Howard Schultz, Starbucks' chairman and chief executive officer, filed to sell 300,000 shares, while Orin Smith, president and chief operating officer, plans to sell 170,000, according to Washington Service, which tracks stock purchases and sales by company officers. Those sales would be the biggest ever for those officers. The proposed sales would total about $17.9 million if completed. Exact amounts will not be known until executives file again with the Securities and Exchange Commission.

Starbucks stock leaped 91 percent in three months, to a record $29.25 on April 25. The stock was down 75 cents at $26.375 late today.

Tracy Moran, a Starbucks spokeswoman, said there were no hidden motives behind the en masse SEC filings.

"Most of our executives have a large part of their net worth tied to Starbucks," Moran explained. Restrictions on when company officers are allowed to sell stock mean that "the windows of opportunity are few and far between" in which to make such sales, she added.

At least one analyst was not troubled by news of the potential sales.

Given the stock's high performance and Starbucks' continued strength, "I don't think people are going to be running for the exits," said John Rogers, an analyst at Jensen Securities Co. in Portland.

Other executives also filed with the SEC to sell shares:

-- Howard Behar, president of Starbucks International and a director, filed to sell 209,858 shares. That would be his largest sale ever, as well, said Washington Service.

-- Jeffrey Brotman, a board member, filed to sell 100,000 shares.

-- Arthur Rubinfeld, senior vice president for real estate, filed to sell 18,000 shares.

-- Arlen Prentice, another board member, filed to sell 36,000 shares.

-- Deidra Wager, senior vice president of retail operations, filed to sell 3,000 shares.

-- Mary Townsend, a vice president, filed to sell 12,000 shares.

Information from Bloomberg Business News is included in this report.