Newly appointed Starbucks CEO Brian Niccol will commute to Starbucks’ main office via a corporate jet three times a week. He will not relocate to Seattle headquarters and instead, will live in Newport Beach, California, according to his offer letter disclosed in an SEC filing last week. Under the agreement, Niccol will be paid a base salary of $1.6 million annually, with an opportunity for an annual cash bonus ranging from $3.6 million to $7.2 million, depending on his performance.He will also be eligible for annual equity awards worth up to $23 million.
Niccol is not new to negotiating such arrangements; he successfully negotiated a similar deal when he became the CEO of Chipotle in 2018. At that time, Chipotle was headquartered in Denver, Colorado, while Niccol lived in Newport Beach. Three months after Niccol’s appointment, Chipotle moved its headquarters to Newport Beach.
Starbucks’ offer letter also notes that a remote office and assistant will be set up for Niccol in Newport Beach. Despite his primary residence, Niccol will be expected to work from the Seattle office at least three days a week, per Starbucks’ hybrid work policies.
“Brian’s primary office and a majority of his time will be spent in our Seattle Support Center or out visiting partners and customers in our stores, roasteries, roasting facilities, and offices around the world,” a Starbucks spokesperson told CNBC Make It. “His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners.”
Starbucks employees have been required to work from the office at least three days a week since early 2023, making this arrangement for Niccol notable. This flexibility highlights the difference in bargaining power between senior-level executives and average employees.
Brian R Niccol, a well-known American businessman, is set to become the Chief Executive Officer of Starbucks on September 9, 2024, succeeding Laxman Narasimhan. Niccol, who has made a significant mark on the food industry, previously served as Chairman and CEO of Chipotle, where he’ll lead the company until August 31, 2024.
Niccol is not new to negotiating such arrangements; he successfully negotiated a similar deal when he became the CEO of Chipotle in 2018. At that time, Chipotle was headquartered in Denver, Colorado, while Niccol lived in Newport Beach. Three months after Niccol’s appointment, Chipotle moved its headquarters to Newport Beach.
Starbucks’ offer letter also notes that a remote office and assistant will be set up for Niccol in Newport Beach. Despite his primary residence, Niccol will be expected to work from the Seattle office at least three days a week, per Starbucks’ hybrid work policies.
“Brian’s primary office and a majority of his time will be spent in our Seattle Support Center or out visiting partners and customers in our stores, roasteries, roasting facilities, and offices around the world,” a Starbucks spokesperson told CNBC Make It. “His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners.”
Starbucks employees have been required to work from the office at least three days a week since early 2023, making this arrangement for Niccol notable. This flexibility highlights the difference in bargaining power between senior-level executives and average employees.
Brian R Niccol, a well-known American businessman, is set to become the Chief Executive Officer of Starbucks on September 9, 2024, succeeding Laxman Narasimhan. Niccol, who has made a significant mark on the food industry, previously served as Chairman and CEO of Chipotle, where he’ll lead the company until August 31, 2024.
Source Agencies
