Starbucks introduced on Wednesday that it will provide new CEO Brian Niccol, 50, roughly $113 million in whole compensation together with a $10 million sign-on bonus, a $75 million fairness grant, and, beginning in fiscal 2025, a grant that may very well be value $23 million per 12 months. That’s on prime of Niccol’s annual $1.6 million wage and an annual money bonus that might vary from $3.6 million to $7.2 million, relying on Niccol’s efficiency.
In addition, Niccol’s provide letter states he received’t be required to relocate to the corporate’s headquarters in Seattle, though he agreed to commute from his residence as mandatory. Chipotle Mexican Grill is headquartered in Newport Seaside, Ca. Till he will get everlasting secondary housing in Seattle, Starbucks agreed to cowl the price of any momentary housing preparations and a private chauffeur to drive Niccol round Seattle. Starbucks additionally promised him it will set up a small distant workplace in Newport Seaside, on Starbuck’s dime. He may use Starbucks’ aircraft to journey between his home and HQ, and his main workplace shall be in Seattle, the corporate mentioned.
“Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years,” mentioned a Starbucks spokesperson in a press release to Fortune. “His compensation at Starbucks is tied directly to the company’s performance and the shared success of all our stakeholders. We’re confident in his ability to deliver long-term, enduring value for our partners, customers and shareholders.”
Niccol is changing departing CEO Laxman Narasimhan, who led the macchiato maker for 17 months and oversaw a share value decline of 23.9%. That led to a disappointing $32 billion drop in market cap.
A lot of Niccol’s compensation from Starbucks is meant to switch the pay he’s abandoning at Chipotle, the burrito-bowl restaurant empire he’s led for the previous six years. At Chipotle, Niccol drove inventory value progress of 800% and noticed income enhance practically sevenfold, mentioned Starbucks in a assertion. The board on the espresso big is hoping he can deliver the identical progress to the struggling chain.
Throughout the pandemic, Starbucks pivoted to distant work for workplace workers. Three years on, founder Howard Schultz requested workers inside commuting distance to start out coming to work a minimal of three days per week. On the time, Schultz mentioned that distant work had “unintended consequences” and that the corporate might lose the artwork of collaboration and a connection to its shared mission.
Along with a perk of as much as $250,000 in private journey on the company jet, Niccol will get entry to Starbucks’ government bodily program. Nevertheless, as is customary at Starbucks, he’ll now be prohibited from buying and selling in espresso and dairy futures.
