Starbucks' new CEO could see a historic CAD 150 million payday
16 August 2024 18:02
The new CEO of Starbucks, Brian Niccol, has the potential to earn over CAD 134 million in cash and various perks, reports the "Financial Times." Niccol's compensation is set to be one of the highest in the history of American business. Additionally, the contract also provides him the option to work remotely.
According to the "FT," Niccol's compensation is set to be exceptionally high, possibly reaching over CAD 134 million in cash and stock. This is one of the largest contracts in American business history, four times larger than what his predecessor received.
If Niccol meets the set goals, his contract could be worth CAD 150 million. Such agreements are rare outside the financial and technological sectors. The Equilar report indicates that in 2023, only five other CEOs received compensation exceeding CAD 134 million.
"The Lionel Messi of the restaurant industry"
Initially, Niccol will receive a CAD 13 million bonus and CAD 100 million in securities, disbursed over several years. His annual salary will be CAD 2 million, and depending on the company's performance, he may receive a bonus of around CAD 5 million.
An added convenience is that Niccol will not have to relocate to Starbucks' headquarters in Seattle, as the company will create a "small remote office" for him in Newport Beach, California, where he previously relocated Chipotle's headquarters. The company will also cover the cost of a personal assistant and provide access to the corporate jet if visits to Seattle are needed.
Since 2018, Niccol has managed the Burrito Chipotle chain. As president, he doubled its revenues from CAD 6 billion to CAD 13 billion. He is considered one of the best in the industry.
On Wednesday, as reported by CNBC, Laxman Narasimhan stepped down as CEO of Starbucks among other outlets. The man became particularly well-known following an interview with Fortune magazine. In the high-profile interview, the former CEO of the giant stated that he does not work past 6 PM Eastern Time, and if someone from the company takes a minute of his time after that, it better be something really important.
