Starbucks' new CEO sets earnings record with remote work perks
4:03 PM EDT, August 16, 2024
The new CEO of Starbucks, Brian Niccol, has the potential to earn over $100 million in cash and various perks, reports the "Financial Times." Niccol's compensation is set to be one of the highest in the history of American business. Additionally, the contract provides him the option to work remotely.
According to the "FT," Niccol's compensation is set to be exceptionally high, possibly reaching over $100 million in cash and stock. This is one of the largest contracts in American business history, four times larger than what his predecessor received.
If Niccol meets the set goals, his contract could be worth as much as $113 million. Such agreements are rare outside the financial and technological sectors. The Equilar report indicates that in 2023, only five other CEOs received compensation exceeding $100 million.
"The Lionel Messi of the restaurant industry"
Initially, Niccol will receive a $10 million bonus and $75 million in securities, disbursed over several years. His annual salary will be $1.6 million, and depending on the company's performance, he may receive a bonus of around $3.6 million.
An added convenience is that Niccol will not have to relocate to Starbucks' headquarters in Seattle, as the company will create a "small remote office" for him in Newport Beach, California, where he previously relocated Chipotle's headquarters. The company will also cover the cost of a personal assistant and provide access to the corporate jet if visits to Seattle are needed.
Since 2018, Niccol has managed the Chipotle burrito chain. As president, he doubled its revenues from $4.5 billion to $9.9 billion. He is considered one of the best in the industry.
On Wednesday, as reported by CNBC among other outlets, Laxman Narasimhan stepped down as CEO of Starbucks. He became particularly well-known following an interview with "Fortune" magazine. The former CEO stated in the high-profile interview that he does not work past 6 PM, and if someone from the company takes a minute of his time after that, it better be something really important.
