(NTI ) : Starbucks’ newly appointed CEO, Brian Niccol, is set to embark on a daily commute spanning 1,600 kilometers to his new office. As per his employment agreement, Niccol, who resides in California, will travel to Seattle, where Starbucks’ headquarters is located, via corporate jet each day.
Niccol is set to receive an annual base salary of $1.6 million. In addition to this, he is eligible for a cash bonus ranging from $3.6 million to $7.2 million based on his performance. Furthermore, there’s potential for him to earn up to $23 million annually in equity awards.
Sales Decline in U.S. and China Prompts CEO Change
The rationale behind this unusual arrangement stems from Starbucks’ recent performance. Under the leadership of the current CEO, Laxman Narasimhan, the company saw a decline in sales in its two largest markets, the U.S. and China. Narasimhan joined Starbucks in 2022, but the dip in sales this year led to the decision to bring Niccol on board.
Brian Niccol’s Leadership Boosted Chipotle’s Stock by 773%
Given Niccol’s track record, Starbucks is placing high hopes on him. During his tenure at Chipotle, the company’s stock soared by an astonishing 773%. Such flexible work arrangements are often afforded to high-ranking executives who possess strong negotiating power.
Niccol’s Similar Deal in 2018
This commuting arrangement isn’t new for Niccol. Back in 2018, when he became the CEO of Chipotle, he had a similar deal. Although Chipotle’s headquarters was in Colorado at the time, three months after Niccol took charge, the headquarters was relocated to California.
Brian Niccol’s Journey from Taco Bell to Chipotle
Before taking the reins at Chipotle in March 2018, Niccol was the CEO of Taco Bell. At Taco Bell, he also served as the company’s President and Chief Marketing and Innovation Officer.
