Starbucks’ new CEO granted substantial pay package without relocating to Seattle

Starbucks’ incoming CEO, Brian Niccol, stands to potentially earn more than $100 million in his first year with the company through a contract filled with incentives. He will be taking over the position from Laxman Narasimhan, who recently resigned after a brief stint as the company’s top executive. Niccol, known for his successful turnarounds at companies like Taco Bell and Chipotle, is set to become the chairman and CEO of Starbucks on September 9 without having to relocate from his current home in California to Seattle, where the coffee chain is headquartered.

Niccol’s reputation for reviving struggling companies precedes him, as he took over Chipotle during a period of foodborne illness outbreaks and significantly improved the company’s revenue and employee benefits. Starbucks is hopeful that Niccol will be able to boost sales and restore the brand’s image as a premium destination for customers. In a recent Securities and Exchange Commission filing, it was disclosed that Niccol, aged 50, will receive a $10 million cash signing bonus and $75 million in equity awards upon joining Starbucks, with the potential for his total earnings to exceed $100 million if performance targets are met.

His compensation package includes a $1.6 million annual base salary, along with significant cash incentives and future equity awards. Furthermore, Starbucks has made arrangements for Niccol to work remotely from Newport Beach, California, with occasional visits to Seattle and necessary business travel. The company will assist in setting up a small office in Newport Beach for Niccol’s convenience and provide him with an assistant at that location.

In the interim, Rachel Ruggeri, the CFO of Starbucks, will serve as the acting CEO until Niccol officially takes on the role in early September. The news of Niccol’s appointment and compensation package has led to a slight increase in Starbucks’ stock value.