Starbucks welcomes new CEO Brian Niccol with a $113 million payday — and he can work remotely

Starbucks announced Wednesday that it will pay new CEO Brian Niccol, 50, total compensation of about $113 million, including a $10 million sign-on bonus, a $75 million equity grant and, beginning in fiscal year 2025, a grant that could be worth $23. million per year. That’s on top of Niccol’s $1.6 million annual salary and an annual cash bonus that could range from $3.6 million to $7.2 million depending on Niccol’s performance.

For starters, Niccol’s offer letter states that he will not be required to relocate to the company’s headquarters in Seattle, although he has agreed to commute from his residence if necessary. Chipotle Mexican Grill is based in Newport Beach, Ca. Until she obtains a permanent secondary home in Seattle, Starbucks has agreed to cover the costs of any temporary living arrangements and a personal driver to drive Niccol around Seattle. Starbucks also promised to set up a small remote office in Newport Beach on Starbuck’s dime. He can also use the Starbucks plane to travel between his home and headquarters, and his main office will be in Seattle, the company said.

“Brian Niccol has proven to be one of the most effective leaders in our industry, generating significant financial returns over many years,” a Starbucks spokesperson said in a statement to wealth. “His compensation at Starbucks is directly tied to the company’s performance and the shared success of all stakeholders. We are confident in his ability to deliver long-term and lasting value for our partners, customers and shareholders.”

Niccol replaces outgoing CEO Laxman Narasimhan, who led the macchiato maker for 17 months and oversaw a 23.9 percent drop in its share price. This resulted in a disappointing drop in market cap of $32 billion.

Much of Niccol’s compensation from Starbucks is meant to replace the pay he’s leaving behind at Chipotle, the burrito-bowl restaurant empire he ran for the past six years. At Chipotle, Niccol led an 800 percent increase in the stock price and saw profits grow nearly sevenfold, Starbucks said in a statement. The coffee giant’s board hopes it can bring the same growth to the struggling chain.

During the pandemic, Starbucks switched to remote work for office workers. After three years, founder Howard Schultz asked employees within commuting distance to start coming to work at least three days a week. At the time, Schultz said remote work had “unintended consequences” and that the company could lose the art of collaboration and a connection to its shared mission.

In addition to a perk of up to $250,000 in personal corporate jet travel, Niccol will have access to Starbucks’ executive fitness program. However, as is customary at Starbucks, it will now be banned from trading coffee and dairy futures.

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