In an unprecedented move, Starbucks has announced that its newly appointed CEO, Brian Niccol, will be commuting a staggering 1,600 kilometers (approximately 1,000 miles) each day from his home in California to the company’s headquarters in Seattle. This decision was made public on August 15, 2024, marking a significant shift in the company’s approach to executive management and remote working policies.
Niccol, who is set to take over the reins at Starbucks on September 9, 2024, currently resides in Newport Beach, California, where he also served as the CEO of Chipotle. Unlike traditional CEOs who might relocate closer to their company’s headquarters, Niccol will be utilizing a corporate jet for his daily travels—a setup that Starbucks has agreed to fund.
The arrangement allows Niccol to work from a remote office in California, while also stipulating that he spend at least three days a week at the Seattle headquarters, in line with Starbucks’ hybrid work model established in 2023. This blend of remote and in-office work aims to provide flexibility while ensuring Niccol’s presence where it counts.
Financially, Niccol is set to receive a base salary of $1.6 million annually, with performance-related bonuses potentially boosting his earnings by an additional $3.6 to $7.2 million. Additionally, he is eligible for annual equity awards that could amount to $23 million, underscoring the lucrative nature of his employment package.
This isn’t Niccol’s first experience with a supercommute. During his tenure at Chipotle, he negotiated a similar arrangement, albeit on a much smaller scale, when Chipotle’s headquarters moved from Denver to California shortly after his appointment.
The decision to permit such a unique commuting arrangement highlights the high stakes involved in hiring top-level executives like Niccol, especially during periods of fluctuating sales and market instability. Under the current CEO, Laxman Narasimhan, Starbucks has seen a downturn in its sales figures in major markets like the U.S. and China. Starbucks hopes that Niccol’s proven track record of revitalizing companies, as evidenced by his successful stint at Chipotle where the company’s stock soared 773%, will translate into similar success for the coffee giant.
This move also sets a precedent for accommodating high-ranking executives with significant bargaining power, which is becoming more common across various industries. For instance, similar accommodations were made for Hillary Super of Rihanna’s lingerie brand Fenty x Savage by Victoria’s Secret, emphasizing a growing trend among corporate giants to attract top talent by offering unprecedented flexibility and benefits.
As Niccol prepares to steer Starbucks through this challenging phase, the coffee world and corporate America will be watching closely to see how this unconventional commuting arrangement impacts the company’s strategy and performance in the coming years.