When it comes to earning a substantial salary, Brian Niccol seems to have mastered the art. Recently, Starbucks offered the incoming CEO and Chair a pay increase and significant one-time awards to entice him away from his previous position as the chief executive of Chipotle Mexican Grill.
Niccol is set to take the helm at Starbucks on September 9th, where he will face the challenge of reviving the chain’s declining sales, enhancing the customer experience in stores, and addressing the struggles of the company’s China business. But with a compensation package potentially worth up to $116.8 million in his first year, Niccol certainly has some financial motivation to succeed.
His pay plan at Starbucks, disclosed in a recent filing, includes a base salary of $1.6 million annually, the opportunity to earn up to $7.2 million in cash, and annual equity awards of up to $23 million. Additionally, as a parting gift from Chipotle, Niccol will receive a $10 million cash bonus and $75 million in equity to offset what he is leaving behind at the burrito chain.
Starbucks justified Niccol’s generous compensation by praising his track record of delivering financial success in the industry. They expressed confidence in his ability to create enduring value for all stakeholders, including partners, customers, and shareholders.
Niccol’s pay package at Starbucks far surpasses that of his predecessor, Laxman Narasimhan, demonstrating the company’s commitment to attracting and retaining top talent. Unlike Narasimhan, who was based in the U.K., Niccol will not be required to relocate to Starbucks’ headquarters in Seattle.
In his previous role at Chipotle, Niccol achieved remarkable success, with the stock price climbing 773% during his tenure. His total compensation last year was $22.5 million, primarily driven by stock awards and options.
It’s clear that Niccol’s impressive track record and potential for future success have positioned him as a sought-after leader in the industry. With Starbucks betting big on his abilities, the business world will be watching closely to see how Niccol navigates the challenges ahead.
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