Starbucks’ new CEO seems to have landed the cushiest job possible. Here are the details.
Jet-Set CEO
Starbucks’ new CEO hasn’t even started yet, but he’s already making headlines – and not for the good stuff. Instead, people are fuming at his plan to commute 1000 miles on a company jet three times a week rather than relocate.
Brewing Up Controversy
Instead of moving to Seattle – Starbucks HQ – Brian Niccol is going to be commuting from his Newport Beach home 1000 miles away.
Newport Beach or Bust
He’ll be flying back and forth on a corporate jet as part of this deal, which was just revealed in an SEC filing.
Starbucks Hopes for a Sales Boost
The big announcement about Niccol taking over the top spot at Starbucks came this month as the coffee giant seeks to revive its sluggish sales.
Show Me the Money
Niccol’s new role at Starbucks comes with a hefty paycheck. He’ll be earning a cool $1.6 million a year as a base salary, with the potential to scoop up a bonus that ranges from $3.6 million to $7.2 million, depending on how well he performs. He’ll also be eligible for equity awards that could reach up to $23 million a year.
The Chipotle Chronicles
This isn’t his first time negotiating such a high-profile setup – he was CEO of Chipotle in 2018 with a similar deal. Chipotle’s headquarters was in Denver, but Niccol managed to keep working from Newport Beach – and the company eventually moved its base to his hometown.
Location, Location, Location
His previous job at Taco Bell was located just a short drive from his home, so he seems to have a knack for securing favorable working conditions.
Espresso SOS
The coffee giant has been struggling lately, with weak sales in the U.S. and China dragging down its stock by 21% under the previous CEO. That’s why they’re keen to bring in Niccol – a guy with a track record of reviving troubled companies could be just what Starbucks needs.
The Turnaround King
Niccol led Chipotle out of a food safety scandal and through the pandemic – boosting its stock by 773% and doubling its sales. Under his leadership, Chipotle opened almost 1000 new locations and introduced new tech to streamline operations.
Environmentalists Fume
But this news isn’t sitting pretty for environmental activists. For them, there’s a huge element of irony to Niccol’s deal, as well as a good bit of greenwashing. For a company that claims it’s green, allowing the CEO to use a private jet three times a week seems a bit hypocritical.
Straws vs. Jets
Starbucks banned plastic straws but is now going to fly their CEO thousands of miles a week in a company jet – how is that promoting sustainability?
Up in the Air
Private jets are notorious super-polluters, and their carbon footprint is huge compared to trains – or even commercial flights. A report from the European Federation for Transport and Environment found that private jets are up to 50 times more polluting than trains.
The 1% Problem
There was also a recent United Nations report highlighting how the wealthiest 1% of people are responsible for double the emissions of the poorest 50% – and private jets were a major contributor to this statistic.
A Tale of Two Offices
To add insult to injury, Starbucks is setting up a remote office for Niccol in Newport Beach – complete with a personal assistant. But because of Starbucks’ hybrid work policy he’s expected to spend at least three days a week in Seattle.
PR Spin
According to a company spokesperson, “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.”
The Price of Leadership
Despite the outcry, Starbucks has defended its plans. They claim his leadership will be crucial in turning the company around – which could very turn out to be true.
Worth the Environmental Cost?
But is that worth the damage it’s doing to the environment? Especially when there’s a private remote office sitting gathering dust 4 days a week.
The Remote Work Revolution
It’s not just Starbucks that’s making exceptions for its top brass. Victoria’s Secret recently hired Hillary Super as its new CEO, and she’ll be working from New York City rather than the company’s headquarters in Columbus, Ohio, traveling as needed.
A Growing Trend
It seems like there’s a growing trend for high-profile execs to negotiate flexible work arrangements. If only that sort of flexibility was offered equally to all employees.
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