NEW YORK - Starbucks Corp Chief Executive Howard Schultz obtained a roughly $14 million paper profit by exercising nearly 1 million stock options on Monday.
According to a U.S. Securities and Exchange Commission filing, Schultz exercised options to buy 982,792 shares at $5.81 each, for a total of $5.71 million.
Starbucks stock closed Monday at $20.08, giving Schultz's newly acquired shares a market value of $19.73 million.
The options vested from 2000 to 2002 and would have expired on Oct. 4, 2009.
Following the exercise, Schultz directly owned 19.3 million shares, worth $387.54 million as of Monday's close, the SEC filing shows.
Schultz is Seattle-based Starbucks' largest individual shareholder. He last exercised options in November 2008, another SEC filing shows.
Starbucks is cutting costs to help offset falling customer traffic. It had announced plans to close nearly 1,000 stores, but this month it took 30 U.S. stores off the closure list.
The company's shares were down 15 cents at $19.93 in morning trading on the Nasdaq. (Reporting by Jonathan Stempel; editing by John Wallace)