Starbucks' new CEO Brian Niccol to commute 1,600 km by corporate jet for work

Brian Niccol, the incoming CEO of Starbucks, is set to take on a unique challenge as he assumes his role at the coffee giant next month. The 50-year-old executive, currently residing in California, will face an extraordinary daily commute of 1,600 kilometres to Starbucks’ headquarters in Seattle.

According to his offer letter, Niccol will be flying to work on a corporate jet, a perk accompanying his position. Despite his long commute, Starbucks’ hybrid work policy, in effect since 2023, mandates that he be present in the Seattle office at least three days a week, even when not travelling for other work-related activities.

Niccol, who has a history of securing favourable working conditions, successfully negotiated a similar arrangement during his tenure as CEO of Chipotle in 2018. At that time, Chipotle was headquartered in Colorado, close to his previous workplace. However, the fast-food chain moved its headquarters from Denver to California shortly after he took the top position.

A Starbucks spokesperson confirmed to CNBC that “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.”

Executive privileges and hybrid work policies

Such commuting arrangements, while unusual, are not uncommon among high-ranking executives who possess considerable negotiating power. These leaders often secure employment terms that differ significantly from those of the average employee.

For instance, Hillary Super, the CEO of Fenty x Savage, a lingerie brand by singer Rihanna, was granted a similar concession when she was appointed as the new CEO of Victoria’s Secret. Instead of relocating to the firm’s headquarters near Columbus, Ohio, Super was allowed to work from its New York City offices.

However, not all CEOs enjoy such flexibility. Executives like Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon are actively advocating for a return to stricter work-from-office policies for their employees.

New Starbucks CEO to commute 1000 miles each way at company expense
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Starbucks’ decision to offer Niccol this unusual commuting arrangement may be rooted in the company’s current challenges.

Under the leadership of its outgoing CEO, Laxman Narasimhan, Starbucks has seen declining sales in its two largest markets, the United States and China, this year. Niccol’s track record of turning around struggling companies, as evidenced by his success at Chipotle, where the stock price reportedly soared by 773% during his tenure, makes him a valuable asset for Starbucks.

Understanding Brian Niccol’s pay package

Niccol’s compensation package has also attracted attention due to its size and the lengths Starbucks went to secure him from Chipotle. His pay includes a base salary of $1.6 million per year, with the potential to earn a cash bonus ranging from $3.6 million to $7.2 million, based on his performance.

In addition to his salary, Niccol will receive a $10 million sign-on bonus and a one-time equity “replacement grant” valued between $75 million and $80 million. This grant is intended to offset the Chipotle stock he forfeited when he agreed to join Starbucks, as reported by Axios.com.

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While it’s not unusual for companies to offer cash and stock bonuses to cover lost compensation, the scale of Niccol’s package stands out. His equity grants at Chipotle had grown significantly during his leadership, driven by the company’s stock increasing by over 700% since he took the helm in March 2018.

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