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Starbucks CEO will fly 1,600 km on company jet to work from office 3 days a week instead of relocating

Starbucks CEO will fly 1,600 km on company jet to work from office 3 days a week instead of relocating

Under Starbucks' hybrid work policy, which has been in place since 2023, Niccol is expected to work from the Seattle office at least three days a week

Starbucks' newly appointed CEO, Brian Niccol, will be commuting 1,600 kilometres from his home in California to the company's headquarters in Seattle. This unconventional commuting arrangement is facilitated by a corporate jet, as outlined in his employment agreement.

Under Starbucks' hybrid work policy, which has been in place since 2023, Niccol is expected to work from the Seattle office at least three days a week.

A spokesperson for Starbucks clarified, “Brian’s primary office and the 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. His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners.”

Niccol's commuting plan is not unprecedented; during his tenure as CEO of Chipotle, he was part of a similar setup. That move followed Chipotle's headquarters relocation from Colorado to California three months  after he stepped into the role.

This level of flexibility is often seen among high-ranking executives who negotiate specialised arrangements. For example, Hillary Super, CEO of Rihanna's Fenty x Savage, has the freedom to work from New York City rather than Victoria's Secret's base in Ohio.

In contrast, leaders like Amazon's Andy Jassy and JPMorgan Chase's Jamie Dimon are pushing for a more traditional return to in-office work.

The 50-year-old executive brings a wealth of experience and a vision for the future, having previously led Chipotle Mexican Grill, where he significantly increased the company's stock value during his tenure.

In terms of compensation, Niccol will receive an annual base salary of $1.6 million, alongside potential cash bonuses ranging between $3.6 million and $7.2 million based on performance. He is also in line for annual equity awards valued at up to $23 million, reflecting the company's high expectations for his leadership.

Niccol’s appointment follows a challenging period for Starbucks, with sales declining in key markets, including the US and China, under the leadership of previous CEO Laxman Narasimhan.

With a strong track record of revitalising companies, including a remarkable 773% increase in stock value at Chipotle, expectations are high for Niccol as he steps into the role amidst these challenges.
 

Published on: Aug 21, 2024, 2:07 PM IST
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