Brian Niccol, the newly appointed CEO of Starbucks Corp., will not be compelled to relocate to the company’s headquarters in Seattle once he begins his tenure next month. Instead, according to the new CEO’s offer letter, which was made public in an SEC filing last week, Starbucks said Niccol may reside in his California home and commute 1,000 miles (1,600 kms) to the company’s head office on a corporate jet.
According to Starbucks’ hybrid work guidelines, Niccol will still be required to work from the Seattle office three days a week when he is not traveling for business, a company representative told CNBC Make It. Starbucks further mentioned in the offer letter that it would provide Niccol with a remote office in Newport Beach and a secretary of his choosing.
CEOs are increasingly permitted to work remotely, and this was a perk Starbucks offered Niccol when he joined the struggling restaurant firm. Together with a yearly salary of $1.6 million, he also received a $10 million monetary signing bonus. A monetary bonus ranging from $3.6 million to $7.2 million could be offered to him, contingent on his performance. Additionally, the 50-year-old will be qualified for yearly equity rewards of up to $23 million.
A Starbucks representative added that Niccol would mostly work out of the company’s Seattle headquarters. According to the filing, the corporation would also cover his living expenses for up to three months as he looks for additional accommodation in Seattle. Niccol will be qualified to get reimbursement for a portion of his relocation expenses should he choose to relocate to the Seattle area. He will start as CEO on September 9.
According to CNBC, the coffee giant’s performance has suffered this year as a result of poor sales in its two biggest markets, China and the United States. Under the leadership of former CEO Laxman Narasimhan, Starbucks’ shares dropped by 21%.
Niccol has a proven track record of stabilising unstable businesses. During his tenure as Chipotle’s CEO, he guided the company’s eateries through the pandemic and assisted the company in recovering from its foodborne disease controversy. According to CNBC, the restaurant chain’s shares increased by 773% while he held a position there.
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