Starbucks announced Wednesday that it would offer new CEO Brian Niccol, 50, approximately $113 million in total compensation including a $10 million sign-on bonus, a $75 million stock grant and, starting in fiscal year 2025, a grant that could be worth $23 million per year. That’s in addition to Niccol’s annual salary of $1.6 million and an annual cash bonus that could range from $3.6 million to $7.2 million, depending on Niccol’s performance.
To boot, Niccol’s offer letter states that he does not have to move to the company’s headquarters in Seattle, although he agreed to commute from his hometown if necessary. Chipotle Mexican Grill is headquartered in Newport Beach, California. Until he obtains permanent secondary housing in Seattle, Starbucks agreed to cover the cost of any temporary housing and a personal driver to drive Niccol around Seattle. Starbucks also promised him that it would establish a small remote office in Newport Beach, at Starbucks’ expense. He can also use Starbucks’ plane to travel between his home and its headquarters, and his headquarters will be in Seattle, the company said.
“Brian Niccol has proven to be one of the most effective leaders in our industry, generating significant financial returns over many years,” a Starbucks spokesperson said in a statement. Fortune. “His compensation at Starbucks is directly tied to the company’s performance and the shared success of all our stakeholders. We are confident in his ability to deliver long-term, lasting value for our partners, customers and shareholders.”
Niccol replaces outgoing CEO Laxman Narasimhan, who led the macchiato maker for 17 months and oversaw a 23.9% share price decline. That led to a disappointing drop in market capitalization of $32 billion.
Much of Niccol’s compensation from Starbucks is intended to replace the wages he leaves behind at Chipotle, the burrito-bowl restaurant empire he has run for the past six years. At Chipotle, Niccol boosted stock prices by 800% and saw profits grow nearly sevenfold, Starbucks said in a statement. statement. The coffee giant’s board hopes he can achieve the same growth in the struggling chain.
During the pandemic, Starbucks shifted to remote work for office workers. Three years later, founder Howard Schultz asked employees who were within commuting distance to at least come to work three days a week. Schultz said at the time that remote work had “unintended consequences” and that the company could lose the art of collaboration and connection to its shared mission.
In addition to receiving a bonus of up to $250,000 in personal travel on the corporate jet, Niccol will have access to Starbucks’ brick-and-mortar executive program. But as usual at Starbucks, he will now be banned from trading coffee and dairy futures.
