Starbucks\u00a0offered incoming CEO and Chair Brian Niccol a pay bump and hefty one-time awards to lure him from his prior role as chief executive at\u00a0Chipotle Mexican Grill.<\/p>\n
Niccol officially takes the reins at the embattled coffee chain on Sept. 9. As CEO, he\u2019ll be tasked with turning around the company\u2019s slumping sales, improving customers\u2019 experience inside stores and figuring out what to do with its struggling China business. It\u2019s a big undertaking \u2014 for which he will be well compensated.<\/p>\n
Starbucks disclosed Niccol\u2019s incoming pay plan in a filing on Wednesday. The majority of his compensation package is made up of equity that vests over time, and is based on company performance targets and other metrics. In his first year, his pay package could be worth as much as $116.8 million if the company hits its targets and it fully vests.<\/p>\n
Niccol will be paid a base salary of $1.6 million annually, with the opportunity to earn up to $7.2 million more in cash. He\u2019ll also be eligible for annual equity awards worth up to $23 million.<\/p>\n
And for leaving Chipotle, Niccol will receive a $10 million cash bonus and $75 million in equity to make up for what he\u2019s forfeiting with his departure from the burrito chain. The equity will vest over a three-to-four-year period, based on company performance and Niccol\u2019s tenure.<\/p>\n
\u201cBrian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years,\u201d Starbucks said in a statement. \u201cHis compensation at Starbucks is tied directly to the company\u2019s performance and the shared success of all our stakeholders. We\u2019re confident in his ability to deliver long-term, enduring value for our partners, customers and shareholders.\u201d<\/p>\n
At Chipotle, Niccol collected a $1.3 million base salary last year, with a total compensation of $22.5 million. Stock awards and options accounted for the bulk of his earnings, but he also took home a cash bonus of $5.2 million.<\/p>\n
During his tenure at Chipotle, the stock climbed 773%, fattening the value of his overall compensation.<\/p>\n
Niccol\u2019s pay package is also more generous than that of his ousted predecessor, Laxman Narasimhan. His base salary was $1.3 million, with possible cash bonuses of up to $5.85 million and equity awards of $13.6 million, according to filings. In fiscal 2023, Narasimhan\u2019s compensation was valued at $14.6 million, largely from stock awards.<\/p>\n
Unlike Narasimhan, who was previously based in the U.K., Niccol won\u2019t be required to relocate to Starbucks\u2019 headquarters in Seattle.<\/p>\n
\u2014 CNBC\u2019s Kate Rogers contributed to this report<\/em><\/p>\n<\/p>\n Starbucks\u00a0offered incoming CEO and Chair Brian Niccol a pay bump and hefty one-time awards to lure him from his prior role as chief executive at\u00a0Chipotle Mexican Grill. Niccol officially takes the reins at the embattled coffee chain on Sept. 9. As CEO, he\u2019ll be tasked with turning around the company\u2019s slumping sales, improving customers\u2019 experience […]<\/p>\n","protected":false},"author":0,"featured_media":8011,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-8010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/8010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=8010"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/8010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/8011"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=8010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=8010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=8010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}