In addition to remuneration over $100 million per year, the new boss of Starbucks will have an office in the California town where he lives so that he does not have to move to Seattle where the headquarters of the group is located.
Weaker in the face of rising prices and pressure from shareholders, Starbucks changes management. The American coffee giant on Tuesday announced the departure of its CEO Laxman Narasimham with immediate effect. Brian Niccol, Chipotle’s boss since 2018, will replace him at the beginning of September.
Starbucks pulled out all the stops to poach the man who managed to increase the Mexican fast-food chain’s profits sevenfold, according to a document consulted Financial TimesBrian Niccol should indeed be one of the highest paid bosses in the United States with a total remuneration of 113 million dollars, including, among other things, a welcome bonus of 10 million dollars, an annual salary of 1, $6 million, cash A bonus worth about $3.6 million paid based on Starbucks performance, or a $75 million bonus to make up for the benefits he has not received by leaving Chipotle early.
But that’s not all. Among other benefits awarded to its new manager, Starbucks promises him 100% teleworking. There will be no need for Brian Niccol to move to Seattle, where the group’s headquarters are located. He will be provided with a “small office” near Newport Beach in California. This is where Brian Niccol has been working since moving Chipotle’s headquarters from Denver.
“One of the most effective leaders”
Starbucks also plans to cover the cost of any temporary housing and a personal driver for days when Brian Niccol still wants to travel to Seattle. Finally, he will be able to use a company plane to travel between his home and the main office.
“Brian Niccol has proven to be one of the most effective leaders in our industry, generating significant financial results over the years,” a Starbucks spokesperson said in a statement justifying the compensation and benefits awarded to the new group manager .
Referring to a report from Equilar, the Financial Times emphasizes that such a contract is nevertheless rarely offered to a manager, especially in a sector other than finance or technology. “Only five other executives received compensation worth more than $100 million in 2023,” the business daily says. Ultimately, Brian Niccol’s compensation at the head of Starbucks would be 75% higher than that of his predecessor.