In a move that has captured widespread attention, Starbucks’ incoming CEO, Brian Niccol, is set to undertake a remarkable daily commute of 994 miles (1,600 kilometers) from his home in California to the company’s headquarters in Seattle. This unusual travel arrangement will commence as he steps into his new role next month.
Corporate jet for commute
According to his offer letter, Niccol will utilize a corporate jet for his daily travels, ensuring that he can efficiently manage his responsibilities at Starbucks. Despite the extensive commute, the company’s hybrid work policy, effective since 2023, mandates that he work from the Seattle office at least three days a week when not traveling for other business purposes.
Compensation and performance incentives
50 years old, Brian Niccol is set to receive a base salary of $1.6 million every year and can earn a cash bonus of $3.6 million to $7.2 million depending on his performance. He will also be eligible for annual equity awards worth up to $23 million.
A history of supercommuting
This is not Niccol’s first experience with a supercommute arrangement. In 2018, he successfully negotiated a similar deal while serving as the CEO of Chipotle. Although Chipotle’s headquarters was initially in Colorado, a mere 15-minute drive from his previous workplace, the fast-food giant moved its headquarters to California three months after his appointment.
“Brian’s primary office and a majority of his time will be spent in our Seattle Support Center or out visiting partners and customers in our stores, roasteries, roasting facilities, and offices around the world. His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners,” a Starbucks spokesperson told CNBC.
Such favorable employment terms are not uncommon for high-ranking executives who possess significant bargaining power. For instance, Hillary Super of Rihanna’s lingerie brand Fenty x Savage received a similar concession when Victoria’s Secret appointed her as its new CEO, allowing her to work from the firm’s New York City offices instead of its headquarters near Columbus, Ohio.
However, not all CEOs enjoy such flexible arrangements. Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon are advocating for a return to more traditional office-based work policies.
Challenges and opportunities
The rationale behind Niccol’s unique arrangement at Starbucks is underscored by the coffee giant’s recent challenges. Under the tenure of the current CEO, Laxman Narasimhan, sales have declined in the company’s two largest markets, the US and China, this year.
Brian Niccol’s appointment is seen as a strategic move to reverse this trend. Known for his ability to turn around troubled companies, Niccol boasts an impressive track record. During his time as CEO of Chipotle, the company’s stock reportedly soared by 773%.
As Starbucks prepares for this new chapter of leadership, all eyes will be on Niccol to see if he can replicate his past successes and steer the coffee giant toward renewed growth and prosperity.