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

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Starbucks It was announced On Wednesday it will be shown New CEO Brian Nicole, approximately 50 years old $113 million total compensation Including a $10 million signing bonus, a $75 million stock award, and, beginning in fiscal 2025, a potential $23 million per year award. This is in addition to Nicole’s annual salary of $1.6 million and an annual cash bonus that could range from $3.6 million to $7.2 million, depending on Nicole’s performance.

And to boot, Nicole Offer letter Niccol stated that he would not be required to move to the company’s headquarters in Seattle, although he agreed to commute from his residence as necessary. Chipotle Mexican Grill is headquartered in Newport Beach, California. Until he can find a permanent secondary residence in Seattle, Starbucks has agreed to cover the cost of any temporary housing arrangements and a personal driver to drive Niccol around Seattle. Starbucks also promised him that it would set up a small remote office in Newport Beach, at Starbucks’ expense. The company said he could also use Starbucks’ jet to travel between his home and headquarters, and his primary office would be in Seattle.

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

Nicole replaces outgoing CEO Lakshman Narasimhan, who led the macchiato maker for 17 months and oversaw a 23.9% share price drop, resulting in a disappointing $32 billion drop in market value.

The bulk of Niccol’s compensation from Starbucks is intended to replace the pay he left behind at Chipotle, the burrito empire he led for the past six years. At Chipotle, Niccol drove an 800% share price growth and saw earnings grow nearly sevenfold, Starbucks said in a statement. statementThe coffee giant’s board of directors hopes it can bring the same growth to the struggling coffee chain.

During the pandemic, Starbucks switched to remote work for office employees. Three years later, founder Howard Schultz asked employees within walking distance to start arriving at work at least 15 minutes earlier than usual. Three days a weekAt the time, Schultz said remote work had “unintended consequences” and that the company could lose the art of collaboration and connection to its shared mission.

In addition to up to $250,000 in personal travel on a private jet, Nicole will have access to Starbucks’ Executive Fitness program. However, as is customary at Starbucks, she will now be prohibited from trading in The Future of Coffee and Dairy.

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