Starbucks CEO Brian Niccol will have an unusually long commute as he becomes the coffee giant’s new boss next month. Mr. Niccol, who lives in California, will drive 1,000 miles (1,600 kilometers) each day to the company’s Seattle headquarters.
According to his offer letter, Mr. Niccol will use a company jet to commute. Even when he is not traveling for work, he is expected to work from the Seattle office at least three days per week, in accordance with Starbucks’ hybrid work policy, which has been in effect since 2023.
The 50-year-old will receive a base salary of $1.6 million per year and could earn a cash bonus of $3.6 million to $7.2 million depending on his performance.
He is also eligible for annual stock awards worth up to $23 million.
This isn’t the first time Mr. Niccol has been part of such a supercommute arrangement. He successfully negotiated a similar deal when he was CEO of Chipotle in 2018.
Chipotle was headquartered in Colorado, a 15-minute drive from Mr. Niccol's last workplace. But the Mexican fast-food chain moved its headquarters from Denver to California three months after he was named CEO.
“Brian’s primary office and the majority of his time will be spent in our Seattle Support Center or visiting partners and customers in our stores, roasteries, roasteries and offices around the world. His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners,” a company spokesperson told CNBC.
Such comfortable working conditions are common for high-ranking executives, who have much greater bargaining power than the average employee.
Hillary Super, of singer Rihanna's lingerie brand Fenty x Savage, received a similar concession when Victoria's Secret named her as its new CEO.
She will work out of the company's New York City office instead of its headquarters near Columbus, Ohio.
But this is not true for all CEOs.
Amazon's Andy Jassy and JPMorgan Chase's Jamie Dimon are making strong calls for a return to the office.
The reason behind Mr. Niccol's unusual arrangement at Starbucks is underscored by the coffee giant's declining sales.
In the US and China, Starbucks' two largest markets, sales declined this year under the leadership of current CEO Laxman Narasimhan.
Mr. Niccol is a strong contender for the top job, as he has a strong track record of turning around troubled companies. When he was CEO of Chipotle, the stock reportedly rose 773%.