Starbucks recently made headlines with the announcement of their new CEO, Brian Niccol, who is set to receive a staggering $113 million payday as part of his compensation package. This eye-catching figure includes a $10 million sign-on bonus, a $75 million equity grant, and a potential annual grant of $23 million starting in fiscal 2025. In addition to this, Niccol will receive an annual salary of $1.6 million, along with a performance-based cash bonus that could range from $3.6 million to $7.2 million.
Remote work has become a popular trend in the wake of the pandemic, and Niccol’s offer letter from Starbucks reflects this shift. Despite the company being headquartered in Seattle, Niccol will not be required to relocate and will be allowed to work remotely from his current residence in Newport Beach, California. To facilitate this arrangement, Starbucks has agreed to cover the cost of any temporary housing arrangements Niccol may require, as well as provide a personal chauffeur to drive him around Seattle. Additionally, the company will establish a small remote office for Niccol in Newport Beach and allow him to use Starbucks’ plane for travel between his home and headquarters.
A spokesperson for Starbucks praised Niccol’s leadership abilities, citing his track record of generating significant financial returns in his previous roles. The company is confident in Niccol’s ability to deliver long-term value for all stakeholders, including partners, customers, and shareholders. Niccol’s appointment comes in the wake of the departure of former CEO Laxman Narasimhan, who oversaw a decline in the company’s share price and market cap during his tenure.
Much of Niccol’s compensation from Starbucks is intended to offset the pay he is leaving behind at Chipotle, where he served as CEO for the past six years. During his time at Chipotle, Niccol achieved impressive growth in the company’s stock price and profits, leading to a significant increase in shareholder value. The board at Starbucks is hopeful that Niccol can bring this same level of success to the coffee chain as they navigate a period of transition and growth.
In the midst of these changes, Starbucks has also made adjustments to their remote work policies. While the company initially pivoted to remote work for office employees during the pandemic, founder Howard Schultz has since encouraged employees within commuting distance to return to the office at least three days per week. Schultz expressed concerns about the potential loss of collaboration and connection to the company’s mission that could result from an extended period of remote work.
In addition to his generous compensation package, Niccol will have access to perks such as up to $250,000 in personal travel on the corporate jet and participation in Starbucks’ executive physical program. However, as a standard practice at Starbucks, Niccol will be prohibited from trading in coffee and dairy futures to avoid any conflicts of interest.
Overall, Niccol’s appointment as CEO of Starbucks marks a new chapter for the company as they look to drive growth and innovation under his leadership. With a strong track record of success in the restaurant industry, Niccol brings a wealth of experience and expertise to the role, positioning Starbucks for continued success in the years to come.