Part of Brian Niccol’s industry-rattling move from Chipotle to Starbucks concerned the home base of the CEO himself. About three months into his tenure with the burrito fast casual, which began in 2018, the company moved its headquarters from Denver to Newport Beach, California, which was just miles from Taco Bell’s Irvine head office where Niccol previously served as lead executive.
With Starbucks, the company noted in a filing, Niccol wouldn’t be required to relocate to Seattle HQ. Instead, it would set up and pay for a small remote office in Newport Beach with an assistant he could handpick.
Further details from Niccol’s offer letter, which was made public last week, also revealed Niccol will live in Newport Beach and commute to Starbucks’ head office 1,000 miles away on a corporate jet. To note, Niccol will not travel back and forth daily. He will have a residence in Seattle as well where he will stay while there, and while working from Starbucks’ HQ.
MORE: Starbucks’ Hire of Brian Niccol Will Send ‘Ripples’ Through Industry
When Niccol is not traveling for the job, Starbucks said in the letter, he’ll be expected to work from the Seattle office at least three days a week, according to CNBC Make It. That’s aligned with Starbucks’ hybrid work policies. The company in January 2023 released an open letter saying it was “time we rebuild and revive the energy of the [Seattle Support Center] and our regional offices as thriving, active hubs” coming out of pandemic conditions.
Effective that January 30, all SSC employes within commuting distance were asked to work in the office a minimum of three days per week. The policy also applied to regional-based support partners within commuting distance of a regional base. In that case, there was a slight nuance—one of the days was a common one identified by local leadership where everybody would be in the office together.
Either way, Niccol’s primary office, a spokesperson told the publication, and a “majority of his time” will be spent in the SSC or out visiting employees and customers in 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,” the spokesperson said.
This “supercommuting CEO” arrangement is one CNBC pointed out has become more common in a tight labor market that often demands flexibility of employers. Victoria’s Secret made a similar move recently when it hired Hillary Super from Fenty x Savage as CEO. She’s planning to work from its New York City offices instead of the Columbus, Ohio, HQ.
Niccol is set to succeed Laxman Narasimhan, who was let go after stepping into the role in March 2023, on September 9. He’s receiving a compensation package in his first year worth up to nearly $117 million. That includes a $1.6 million base salary, a $10 million signing bonus, up to $7.2 million in annual cash incentives, a targeted $23 million in annual stock awards, and a one-time targeted $75 million replacement equity grant (this compensates the employee for the equity they are forfeiting by leaving their current job).
Niccol comes into the role after six years with Chipotle, where the company’s sales nearly doubled during (the number was $9.872 billion year-end 2023 in the U.S.), profit lifted nearly sevenfold, and its stock soared 800 percent. Chipotle completed a 50-for-1 split in late June—one of the biggest in market history—taking its pre-share price that Tuesday from $3,128.08 to $65.66.
“Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years,” a Starbucks spokesperson said in an email. “His compensation at Starbucks is tied directly to the company’s performance and the shared success of all our stakeholders. We’re confident in his ability to deliver long-term, enduring value for our partners, customers and shareholders.”
Starbucks saw its shares fall north of 21 percent in Narasimhan’s run. The brand has faced challenges from a discerning customer amid inflation and operational friction in-store as it tried to get faster and more efficient with supply and processes. Starbucks’ domestic traffic declined 7 percent in Q2 and same-store sales slid 3 percent, marking the worst performance outside of the pandemic or Great Recession. And it continued in Q3 as comps fell 2 percent on the back of a 6 percent drop in transactions.
