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Starbucks' new CEO can work from California, and he's set to make more than the last CEO

Lian Kit Wee   

Starbucks' new CEO can work from California, and he's set to make more than the last CEO
  • Brian Niccol is taking over as CEO of Seattle-based Starbucks next month — from Seattle.
  • He'll work remotely and travel to headquarters, where he'll have a driver.

Brian Niccol is set to receive one of the highest compensation packages for a CEO of a publicly traded company — and he can work remotely.

He's heading to Seattle-based Starbucks from Chipotle, to lead the coffee giant as it faces activist investors and other issues.

Niccol can work out of a remote office in Newport Beach, California, where he previously helmed Chipotle, according to an SEC filing on Wednesday, which detailed Niccol's employment terms.

The new CEO's base compensation is $1.6 million a year, with an annual bonus that could range from over twice to four times his salary, depending on the company's performance.

He received a $10 million signing bonus and annual stock awards valued at $23 million, which will be distributed beginning next year. To compensate for his departure from Chipotle, Niccol will also get a $75 million equity grant, which will be distributed over three years.

Including the multi-year stock grants, Niccol's total compensation could reach over $113 million. Niccol earned $22.5 million at Chipotle last year, while his predecessor, Laxman Narasimhan, earned $14.6 million during the same time, Reuters reported.

"Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years," Starbucks told Fortune in a statement. "His compensation at Starbucks is tied directly to the company's performance and the shared success of all our stakeholders."

The company will also reimburse Niccol's relocation expenses if he decides to move to Seattle and cover up to three months of temporary housing costs there. He'll get a driver in Seattle on Starbucks' dime.

Starbucks, as a whole, does not encourage remote work. Last year, then-CEO Howard Schultz required employees to work from the office for a minimum of three days a week, Bloomberg reported last year.

Tech leaders, including Google's former CEO, Eric Schmidt, recently criticized remote working models. Schmidt said that prioritizing work-life balance affected the tech company's competitiveness and productivity in the AI race. He later retracted his remarks.

Niccol starts as CEO on September 9, according to the SEC filing.

Starbucks did not immediately respond to a request for comment from Business Insider sent outside standard business hours.



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