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Chief executive officers

Starbucks' New CEO Brian Niccol to Receive One of the Highest Compensation Packages in Corporate History

Strategic Insights

— 2 min read

Brian Niccol is set to take over as CEO of Seattle-based Starbucks, working remotely from a California office and traveling to the company's headquarters in Seattle, where he will have a driver at Starbucks' expense. Niccol's compensation package is expected to exceed $113 million, surpassing his earnings at Chipotle, and will include a base salary of $1.6 million, annual bonuses that could range from over twice to four times his salary, and a $10 million signing bonus. The package also includes annual stock awards valued at $23 million and a $75 million equity grant, which will be distributed over three years.

Key Takeaways:

  • Brian Niccol's total compensation package for leading Starbucks could exceed $113 million, surpassing his earnings at Chipotle.
  • Niccol will receive a base salary of $1.6 million per year, with an annual bonus that could range from over twice to four times his salary.
  • Niccol will also receive a $10 million signing bonus and annual stock awards valued at $23 million, which will be distributed beginning next year.
  • He will get a $75 million equity grant, which will be distributed over three years as compensation for his departure from Chipotle.
  • Niccol's compensation package includes a $1.6 million base salary, annual bonuses, a $10 million signing bonus, and annual stock awards.
  • Niccol's predecessor, Laxman Narasimhan, earned $14.6 million during the same time period as Niccol's $22.5 million earnings at Chipotle last year.
  • Starbucks will cover up to three months of temporary housing costs for Niccol if he decides to move to Seattle and will also reimburse his relocation expenses.

Statistics:

  • $113 million: The estimated total compensation package for Brian Niccol, exceeding his previous earnings at Chipotle.
  • $1.6 million: Niccol's base salary per year.
  • $10 million: The signing bonus received by Niccol.
  • $23 million: The annual stock awards valued at, which will be distributed beginning next year.
  • $75 million: The equity grant received by Niccol, which will be distributed over three years.
  • 22.5 million: The earnings of Niccol at Chipotle last year.
  • $14.6 million: The earnings of Narasimhan during the same time as Niccol's earnings at Chipotle.
  • 3 months: The temporary housing costs covered by Starbucks for Niccol if he decides to move to Seattle.
  • 9th: September date when Niccol is set to start as CEO, according to the SEC filing.

Sources:

  • Business Insider (https://www.businessinsider.com/starbucks-ceo-steps-down-replaced-by-chipotle-chief-2024-8)
  • SEC filing (https://d18rn0p25nwr6d.cloudfront.net/CIK-0000829224/1b8dd1fc-dd9d-4cbc-b9b1-6ee1e0cd2c5a.pdf)
  • Reuters (https://www.reuters.com/business/retail-consumer/starbucks-new-ceo-niccol-get-base-salary-16-mln-2024-08-14)
  • Bloomberg (https://www.bloomberg.com/news/articles/2023-03-01/starbucks-sbux-corporate-staff-slam-return-to-office-mandate-anti-union-push)

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