Starbucks' incoming CEO to supercommute 1,600 km on private jet to work

This is not the first time Brian Niccol has negotiated a long-distance commute as part of his executive role.

Brian Niccol, soon to be Starbucks' CEO, is set to undertake an extensive daily commute of 1,600 kilometres between his home in California and the coffee giant's headquarters in Seattle. This arrangement, outlined in his offer letter, includes the use of a corporate jet, ensuring Niccol can meet the company's hybrid work policy, which has been in effect since 2023. Under this policy, he is required to work from the Seattle office at least three days a week, even when not travelling for other work-related duties.

Niccol, who is 50-years-old, is expected to receive a substantial compensation package, including a base salary of $1.6 million annually (Rs 13, 42,77,760 approximately). Additionally, he could earn a cash bonus ranging between $3.6 million and $7.2 million, contingent on his performance. Beyond these earnings, he is also eligible for annual equity awards valued at up to $23 million.

This is not the first time Niccol has negotiated a long-distance commute as part of his executive role. In 2018, as CEO of Chipotle, he secured a similar arrangement, even leading the company through the relocation of its headquarters from Denver, Colorado, to California shortly after his appointment.

A Starbucks spokesperson, in a statement to CNBC, clarified the expectations surrounding Niccol’s work schedule: “Brian's primary office and a 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."

Such employment terms, while unusual, are not unprecedented among high-ranking executives, who often possess considerable leverage in negotiating their working conditions. For example, Hillary Super, former CEO of Rihanna's Fenty x Savage, was granted similar flexibility when she was appointed as the CEO of Victoria's Secret, allowing her to work from the firm’s New York City offices instead of its headquarters in Columbus, Ohio.

However, not all CEOs enjoy such latitude. Leaders like Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon have been actively promoting a return to office-based work, reflecting broader corporate trends.

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Niccol’s appointment at Starbucks comes at a critical time for the company, as it faces declining sales in its two largest markets, the United States and China. The company’s current CEO, Laxman Narasimhan, has struggled to reverse this downturn, prompting Starbucks to bring in Niccol, who has a proven track record of revitalising companies. During his tenure at Chipotle, the company's stock saw a dramatic increase of 773%, reinforcing his reputation as a transformative leader.