Imagine starting your workday with a cup of Starbucks coffee in California and finishing it nearly 1,600 km away in Seattle — all before dinner. For Starbucks’ newly appointed CEO, Brian Niccol, this will become a reality as he embarks on a unique commuting arrangement. Despite residing in sunny Newport Beach, California, Niccol will routinely travel to Starbucks’ Seattle headquarters on a corporate jet.
A High-Flying Agreement
Niccol’s employment terms include the use of a corporate jet for his cross-country commutes. This arrangement allows him to work from Starbucks’ Seattle office at least three days a week, in line with the company’s hybrid work policy introduced in 2023. The CEO’s annual base salary is set at $1.6 million, with potential cash bonuses ranging from $3.6 million to $7.2 million based on performance. Additionally, Niccol has the chance to earn up to $23 million in annual equity awards.
This commuting setup is not new for Niccol. When he became CEO of Chipotle in 2018, he negotiated a similar agreement. Following his appointment, Chipotle moved its headquarters from Colorado to California, facilitating his long-distance commute.
Flexibility for Top Executives
Such flexible work arrangements are often negotiated by high-level executives who wield significant bargaining power. For instance, Hillary Super, CEO of Rihanna’s Fenty x Savage, secured an arrangement to work from New York City rather than relocate to Victoria’s Secret’s headquarters in Ohio. However, this level of flexibility is not universally accessible. Notable CEOs like Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon advocate for in-office presence and are strong proponents of returning employees to physical workplaces.
Addressing Starbucks’ Challenges
Niccol’s flexible work arrangement comes amidst significant challenges for Starbucks. Under former CEO Laxman Narasimhan, the company experienced a decline in sales in major markets like the US and China. Niccol, renowned for his turnaround success at Chipotle, faces high expectations to rejuvenate Starbucks. During his tenure at Chipotle, he orchestrated a dramatic turnaround, with the company’s stock surging by 773%.
Starbucks, facing increased scrutiny over this arrangement, emphasized that Niccol’s primary office will be the Seattle Support Center, and his schedule will include extensive travel to visit partners and customers globally. Despite criticisms regarding the contrast between Starbucks’ green initiatives and Niccol’s luxurious commuting setup, the company remains focused on navigating its current market challenges and leveraging Niccol’s proven expertise.
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