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Starbucks’ new CEO commutes 1,600 kilometers to work on a company jet
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Starbucks’ new CEO commutes 1,600 kilometers to work on a company jet

Starbucks' new CEO commutes 1,600 kilometers to work on a company jet

Starbucks CEO Brian Niccol will have an unusually long commute next month as the coffee giant’s new chief. Niccol, who lives in California, will travel 1,000 miles (1,600 kilometers) to the company’s headquarters in Seattle every day.

According to his offer letter, Mr. Niccol will use a company jet for his commute. Even when not traveling for work, he is expected to work at the Seattle office at least three days per week, in accordance with Starbucks’ hybrid work policy, which will take effect in 2023.

The 50-year-old receives a base salary of $1.6 million per year and can earn a cash bonus of between $3.6 million and $7.2 million depending on performance.

In addition, he is eligible to receive annual stock awards valued at up to $23 million.

This is not the first time Mr. Niccol has been part of such a super-commuting arrangement. When he was CEO of Chipotle in 2018, he successfully negotiated a similar deal.

Chipotle was headquartered in Colorado, a 15-minute drive from where Niccolò last worked. But three months after he was named CEO, the Mexican fast-food chain moved its headquarters from Denver to California.

“Brian will be based in our Seattle Support Center and will spend much of his time visiting partners and customers at our stores, roasteries, roasting facilities 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 senior managers, who have enormous bargaining power compared to the average worker.

A similar concession was made to Hillary Super of singer Rihanna’s lingerie brand Fenty x Savage when Victoria’s Secret appointed her as its new CEO.

She will work from the company’s New York offices rather than the headquarters near Columbus, Ohio.

However, this does not apply to all CEOs.

Andy Jassy of Amazon and Jamie Dimon of JPMorgan Chase are pushing hard for the reinstatement of the office workplace rule.

The reason for Mr Niccol’s unusual arrangement with Starbucks is underlined by the coffee giant’s declining sales.

In the US and China, Starbucks’ two largest markets, sales have declined this year under the tenure of current CEO Laxman Narasimhan.

Mr. Niccol is a star candidate for the top job because of his strong track record of turning around troubled companies. When he was CEO of Chipotle, the company’s shares reportedly rose 773 percent.

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