Incoming Starbucks CEO could potentially earn over $100 million in his first year with the company through an incentive-based contract. Despite this lucrative offer, he will not need to relocate from California to Seattle, the company’s headquarters.
Starbucks revealed that Brian Niccol will be taking over as chairman and CEO, succeeding Laxman Narasimhan who recently resigned. Niccol, known for his successful turnarounds at Taco Bell and Chipotle, will officially assume his new roles on Sept. 9.
Niccol’s appointment comes after his accomplishments in revitalizing Chipotle, boosting revenue, introducing innovative products, and implementing employee benefits like tuition assistance.
Starbucks is banking on Niccol to improve sales and restore its position as a premium destination for customers. His compensation package includes a $10 million signing bonus, $75 million in equity awards, and the potential to earn over $100 million in his first year if performance targets are met.
In addition to a $1.6 million base salary, Niccol will have cash incentives and equity awards going forward. Notably, Starbucks is allowing him to remain in California and commute to Seattle as needed, providing a remote office and an assistant in Newport Beach.
Rachel Ruggeri will serve as interim CEO until Niccol officially joins Starbucks in early September. The company’s stock rose after the announcement of his appointment.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
