US Markets
Thursday, August 15th, 2024 2:47 pm EDT
Key Points
- Starbucks has offered incoming CEO Brian Niccol a lucrative compensation package worth up to $116.8 million in his first year, including a $1.6 million base salary, $7.2 million in potential cash bonuses, and $23 million in annual equity awards.
- Niccol will also receive a $10 million cash bonus and $75 million in equity to compensate for leaving his previous position as CEO of Chipotle, where his leadership led to a 773% stock surge during his tenure.
- Niccol’s pay package surpasses that of his predecessor, Laxman Narasimhan, and he will not be required to relocate to Starbucks’ Seattle headquarters.
Starbucks has offered its incoming CEO and Chair, Brian Niccol, a highly lucrative compensation package to entice him from his previous role as CEO of Chipotle Mexican Grill. Niccol, set to officially take over Starbucks on September 9, is tasked with addressing challenges such as declining sales, enhancing customer experience, and reviving the company’s struggling China business. His compensation plan, which could total $116.8 million in his first year if performance targets are met, includes a base salary of $1.6 million, with the potential to earn up to $7.2 million in cash bonuses and $23 million in annual equity awards.
As part of the deal, Starbucks will compensate Niccol for the losses he incurred by leaving Chipotle. This includes a $10 million cash bonus and $75 million in equity, which will vest over a period of three to four years based on Starbucks’ performance and Niccol’s tenure. Starbucks praised Niccol’s leadership and financial achievements in a statement, expressing confidence in his ability to deliver long-term value to stakeholders.
Niccol’s previous earnings at Chipotle in the last year included a $1.3 million base salary and total compensation of $22.5 million, largely driven by stock awards and a $5.2 million cash bonus. Under his leadership, Chipotle’s stock surged by 773%, significantly boosting the value of his compensation. Niccol’s compensation package at Starbucks surpasses that of his predecessor, Laxman Narasimhan, who received a base salary of $1.3 million and overall compensation of $14.6 million in fiscal 2023. Unlike Narasimhan, Niccol will not be required to relocate to Starbucks’ headquarters in Seattle.
With a compensation plan heavily tied to the company’s performance, Niccol is expected to steer Starbucks through its current challenges while driving long-term growth for its partners, customers, and shareholders.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/08/14/starbucks-new-ceo-brian-niccol-compensation-chipotle.html
