Starbucks CEO Brian Nicol will have an unusually long commute to work as he takes over as the coffee giant’s new chief next month. Mr Nicol, who lives in California, will travel 1,600 kilometres every day to the company’s headquarters in Seattle.
According to his offer letter, Mr. Nicol will use the corporate jet for his commute. Even when he’s not traveling for work, he will be expected to work from the Seattle office at least three days a week, in line with Starbucks’ hybrid work policy, which is in place through 2023.
The 50-year-old will be paid a base salary of $1.6 million per year and could also receive cash bonuses ranging from $3.6 million to $7.2 million depending on his performance.
He will also be eligible for annual equity awards of up to $23 million.
This isn’t the first time Mr. Niccol has been part of this kind of supercommute arrangement. He successfully negotiated a similar deal in 2018 when he was CEO of Chipotle.
Chipotle was headquartered in Colorado, a 15-minute drive from Mr. Niccol’s last workplace. But the Mexican fast food chain moved its headquarters from Denver to California three months after he was appointed CEO.
“Brian will be based in the main office and the majority of his time will be spent at our Seattle support center or meeting with partners and customers at our stores, roasteries, roasting facilities and offices around the world. His schedule will exceed the hybrid work guidelines and workplace expectations we set for all partners,” a company spokesperson told CNBC.
Such relaxed employment terms are common for high-ranking executives who have immense bargaining power compared to the average employee.
Hilary Super of singer Rihanna’s lingerie brand Fenty x Savage was given a similar exemption when Victoria’s Secret made her its new CEO.
She will work from the company’s New York City office rather than its headquarters near Columbus, Ohio.
But this isn’t true for all CEOs.
Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon are making strong efforts to re-implement the working from office policy.
The reason behind Mr Niccol’s unusual arrangement at Starbucks is the coffee giant’s falling sales.
In Starbucks’ two biggest markets, the U.S. and China, sales have declined this year under the tenure of its current CEO Laxman Narasimhan.
Mr. Niccol is a star candidate for the top job because he has a strong track record of turning around troubled companies. While he was CEO of Chipotle, its stock reportedly soared 773%.
