Starbucks Corporation awarded its new CEO, Brian Niccol, a remarkable $96 million compensation package for just four months of work in 2023, making it one of the largest pay packages in corporate America, a Bloomberg report said. A majority of this payment, which is around 94 percent, came from stock awards. These stock awards are primarily performance-based, with some also linked to time-based vesting that spans a three-year period. In addition to the stock awards, Niccol received a $5 million sign-on bonus after completing his first month with the company.
Niccol took over the role of CEO after Starbucks made the decision to part ways with its previous CEO amid a series of sales declines. The coffee giant brought Niccol in from Chipotle Mexican Grill, hoping that his experience could revitalise the company and reverse its financial slump. Although Starbucks is headquartered in Seattle, the company did not require Niccol to relocate there immediately. Instead, they covered his temporary housing costs and provided him with access to the company jet.
The report said a filing from the company disclosed that Starbucks spent over $143,000 on Niccol’s housing, with around half of that amount being for tax-related expenses. In addition, Niccol’s travel expenses between his home in Southern California and the company’s Seattle office amounted to about $72,000. He also incurred roughly $19,000 for personal use of the company’s aircraft.
At the time of his hiring, Bloomberg estimated Niccol’s total annual compensation package to be valued at approximately $113 million. This substantial amount includes the equity compensation designed to make up for the awards Niccol forfeited when he left Chipotle. His earnings place him among the top 20 highest-paid CEOs in the United States, according to the Bloomberg Pay Index.