The coffee giant hired Niccol from Chipotle Mexican Grill in the hopes that his background would help the business recover from its financial setback.
For only 4 months of work in 2023, Starbucks Corporation gave its new CEO, Brian Niccol, an astounding $96 million remuneration package, making it one of the biggest in corporate America, according to a Bloomberg article. Approximately 94 per cent of this settlement was made up of stock awards. Performance is the main determinant of these stock awards, however, some are also tied to time-based vesting over a three-year period. After completing his first month with the company, Niccol was given a $5 million sign-on bonus in addition to the stock awards.
After Starbucks decided to fire its former CEO due to a string of declining sales, Niccol assumed the position of CEO. The coffee behemoth hired Niccol from Chipotle Mexican Grill in the hopes that his background would help the business recover from its financial setback. Despite having its headquarters in Seattle, Starbucks did not demand that Niccol move there right away. Rather, they gave him access to the company jet and paid for his short-term housing.
According to the report, a company filing revealed that Starbucks had spent more than $143,000 on Niccol’s residence, with around half of that sum going towards tax-related costs. Moreover, Niccol spent almost $72,000 on travel between his Southern California home and the company’s Seattle headquarters. He also paid about $19,000 for using the company’s planes for personal purposes.
When Niccol was hired, Bloomberg calculated that his entire yearly remuneration package was worth almost $113 million. The equity compensation intended to compensate Niccol for the awards he forfeited when he departed Chipotle is included in this hefty sum. According to the Bloomberg Pay Index, his salary puts him among the top 20 highest-paid CEOs in the US.