Starbucks’ new CEO, Brian Niccol, will be making an exceptional daily commute to his new role. Niccol, who currently resides in California, will travel 1,600 kilometres each day to Starbucks’ headquarters in Seattle.
According to his employment agreement, Niccol will use a corporate jet for this daily journey. Despite the distance, he is expected to work from Starbucks’ Seattle office at least three days a week, in line with the company’s hybrid work policy, which has been in effect since 2023.
Niccol, aged 50, will receive an annual base salary of $1.6 million. Additionally, he is eligible for a cash bonus ranging from $3.6 million to $7.2 million, depending on his performance. He will also have the opportunity to earn up to $23 million in annual equity awards.
This commuting arrangement is not new for Niccol. When he was CEO of Chipotle in 2018, he arranged a similar deal. Chipotle, which was headquartered in Colorado, moved its headquarters to California just three months after Niccol took on the role.
A Starbucks spokesperson said, “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. His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners.”
Such flexible work terms are often negotiated by high-ranking executives who have significant negotiating power.
For instance, Hillary Super, the CEO of Rihanna’s lingerie brand Fenty x Savage, was granted a similar arrangement, allowing her to work from New York City instead of Victoria’s Secret’s headquarters near Columbus, Ohio.
However, not all CEOs have such leeway. Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon are actively advocating for a return to in-office work.
The reasons behind Niccol’s unique arrangement are linked to Starbucks’ recent performance.Sales in the company’s largest markets, the US and China, have declined this year under the leadership of current CEO Laxman Narasimhan.
Niccol’s appointment comes with high expectations, given his impressive track record of revitalising companies. Under his leadership at Chipotle, the company’s stock reportedly increased by 773%.
Source Agencies
