In This Story
Starbucks’ incoming chief executive, current CEO of Chipotle Brian Niccol, gave up the guac for a different type of green.
When Niccol takes the helm at the coffee chain next month, he’ll be welcomed with a payday that could reach as much as $120 million a year, Starbucks revealed in regulatory filings dated Sunday.
Niccol’s massive pay package consists of:
- An initial base salary of $1.6 million per year.
- Yearly cash incentive opportunity that worth anywhere from 225% to 450% of the base salary. That ranges from $3.6 million to $7.2 million (but will be prorated this year).
- Annual equity awards valued at $23 million.
- A cash signing bonus of $10 million, in consideration for Chipotle cash incentive opportunities that he gave up to head to Starbucks.
- And a replacement equity grant with a value of $75 million, also with equity awards from his current employer that he forfeited.
But those aren’t the only perks Niccol can expect. The Seattle-based coffee giant will set up “a small remote office” for Niccol in Newport Beach, California — at the company’s expense — for him to work from, the filing showed. The company will also hire an assistant of Niccol’s choosing for that office.
Niccol will also have to secure “permanent secondary housing arrangements” in Seattle within three months of his start date. Starbucks said it will pay for or reimburse Niccol for the cost of any temporary housing he secures in the meantime, while he’s required to commute to and from the company’s Seattle headquarters.
One downside is a restriction on trading certain futures: Under Starbucks’ “coffee and dairy hedging policy,” officers of the company are not allowed to trade in coffee and dairy futures.
Of course, the Starbucks job comes with its challenges. Niccol will need to navigate a tricky environment at the coffee giant, including winning the support of its powerful ex-CEO Howard Schultz while also satisfying shareholder appetite for robust returns — something previous leaders have failed to do.
Niccol is experienced in brand-turnarounds. Upon stepping in as CEO of Chipotle in 2018, he refreshed the fast-casual chain’s menu and modernized digital ordering. Since then, “revenue has nearly doubled, profits have increased nearly sevenfold, and the stock price has increased by nearly 800%,” Starbucks said when it announced Niccol’s hiring.
He previously served as Taco Bell CEO, where he was tasked with revamping the chain’s image. (Under his leadership there, the Tex Mex chain introduced popular new menu items like the Doritos Locos Tacos and the breakfast menu.) He has also held leadership positions at Pizza Hut, and launched his career at consumer goods giant Procter & Gamble.