Brian Niccol might earn at the very least $113 million as the new CEO of Starbucks — whilst he works remotely out of an workplace in Southern California that’s 1,000 miles away from the espresso big’s Seattle headquarters.
Niccol, lured this week from the helm of Chipotle Mexican Grill, shall be allowed to work out of Newport Seashore, Calif., a complicated coastal enclave that’s situated south of Los Angeles, the corporate revealed in securities filings.
In the meantime, the 49-year-old govt be paid a base wage of $1.6 million in addition to an annual bonus that might attain between two and 4 occasions that quantity, based on an organization submitting with the Securities and Alternate Fee.
Starbucks additionally gave Niccol a $10 million signing bonus and annual inventory awards valued at $23 million, which shall be distributed starting subsequent 12 months, filings present.
Niccol can even obtain a $75 million fairness grant to be paid out over three years as compensation for his departure from Chipotle, the place final 12 months he earned $22.5 million.
If Niccol does determine to maneuver to Seattle, Starbucks will reimburse him for relocation bills and canopy as much as three months of momentary housing prices, based on the SEC submitting.
Niccol, who was credited with reviving Chipotle, can even be supplied the companies of a driver at firm expense ought to he relocate.
His first day on the job as CEO shall be Sept. 9, based on the submitting.
In March of final 12 months, then-CEO Howard Schultz known as again Starbucks workers to the workplace at the very least three days every week — a transfer that was met with protest from company staffers.
“Brian Niccol has confirmed himself to be probably the most efficient leaders in our trade, producing important monetary returns over a few years,” Starbucks stated in a press release.
“His compensation at Starbucks is tied directly to the company’s performance and the shared success of all our stakeholders.”
Shares of Starbucks soared 25% on Monday after the corporate introduced Niccol’s rent, boosting the corporate’s market capitalization by $20 billion.
Rachel Ruggeri, Starbucks’ chief monetary officer who shall be its interim CEO till Niccol formally takes the reins subsequent month, cashed in more than $341,000 in company stock on information of the change, based on an SEC submitting.
Niccol replaces Laxman Narasimhan, whose tenure only lasted a year-and-a-half after he was initially introduced in as CEO in March 2023 to engineer a “reinvention” of the world’s greatest espresso chain.
Since then, the inventory has continued to falter, dropping practically one-quarter of its worth.
Niccol inherits an organization that’s underneath strain by activist investor Elliott Funding Administration to enhance its enterprise.
Starbucks has additionally been hamstrung by elevated competitors and slower demand from shoppers within the US and China.
Niccol’s appointment is a coup for Starbucks, as Chipotle’s annual gross sales have surged since he joined in 2018, and the inventory has greater than tripled over the past 5 years.
Starbucks had been underneath strain from Elliott, which had constructed a $2 billion stake.
The hedge fund had advised Starbucks develop its board and make Elliott govt Jesse Cohn a director, although it was not demanding a CEO change.
Sources accustomed to Starbucks instructed Reuters that Schultz had been urgent board members to try to resolve the corporate’s points with out providing a board seat to the activist investor.
Chipotle stated its board had appointed Scott Boatwright, chief working officer, as interim CEO.
Niccol, who has an engineering main from Miami College, joined Chipotle in 2018 from Taco Bell and helped the corporate overcome salmonella and E.coli outbreaks at a number of shops.
With Put up Wires
