Starbucks Corporation made headlines last year when it granted its newly appointed Chief Executive Officer, Brian Niccol, an amazing $96 million in total compensation. That amount far exceeded the compensation of other notable CEOs, such as Alphabet's Sundar Pichai and Apple's Tim Cook, who received around $75 million each. The move pushed Niccol into the global spotlight as one of the highest-paid executives.
What makes Brian Niccol a $96 million CEO?
A major 94% of Niccol's compensation were stock awards, several of which are performance-driven. The other stock awards will vest over three years. Niccol also received a sign-on bonus of $5 million within a month after joining the company in September 2023.
"Brian Niccol is a highly sought-after, effective leader with a proven track record," Starbucks emphasized in its company filings, as reported by Bloomberg.
The compensation package was designed to attract and retain him during a challenging phase for Starbucks. The coffee chain had recently faced declining sales and leadership turnover, including the departure of its former CEO, Laxman Narasimhan. Tasked with renewing the brand, Niccol brought a history of transformative leadership, having successfully turned around Chipotle Mexican Grill as its CEO.
Perks that came with the Job
Part of the deal had to do with more than salary and bonuses. Starbucks didn't ask Niccol to settle himself in the company's Seattle headquarters. Instead, Starbucks covered extensive temporary housing costs, personal travel expenses, and corporate jet use to ferry Niccol the 1,600 kilometres between his California home and Seattle.
Here's an overview of the other benefits he received:
Temporary accommodations: Starbucks covered over $143,000 in temporary housing and tax-related costs.
Commute flights: The company shelled out $72,000 for Niccol’s flights between California and Seattle.
Corporate jet use: An additional $19,000 was spent on his personal use of the corporate jet.
Even Starbucks implemented a hybrid work policy in 2023, requiring employees to be in the Seattle office three days a week, Niccol’s arrangement allowed flexibility even during travel-heavy weeks.
A history of unconventional work arrangements
Niccol is not new to discussing non-traditional work agreements. In 2018, he was already the CEO of Chipotle and had moved its headquarters from Denver to California shortly after his appointment as the head. His tenure at Chipotle brought him a brand of growth; Starbucks was very interested in utilizing this quality for its benefit.
What is Niccol's total compensation?
According to Bloomberg, Brian Niccol is paid an estimated $113 million a year. This makes him one of the top 20 best-paid CEOs worldwide. His income includes:
Base salary: $1.6 million or ₹13.4 crore.
Cash bonuses: between $3.6 million and $7.2 million
Equity awards: up to $23 million
The fact that Starbucks has offered such a rewarding deal to Niccol shows off of its confidence in him to take the company through troubled waters. The coffee titan has had to contend with rising inflation, shifts in consumer behavior, and an increasing need for digital innovation.
This makes Niccol an attractive candidate, considering his track record at Chipotle, where he revived the brand and drove major growth. His leadership style with the ability to deliver results justifies Starbucks' massive investment in his appointment.
Brian Niccol sealed his position among the most highly compensated CEOs in the world after being paid $96 million last year.