Starbucks has gone to great lengths to entice Brian Niccol to take on the role of CEO and Chair, offering him a substantial pay increase and hefty one-time rewards to leave his position as the chief executive of Chipotle Mexican Grill. Niccol is set to start his new role at Starbucks on September 9th, facing the challenging task of reviving the company’s flagging sales, enhancing the customer experience in stores, and addressing the issues with their struggling China business.
Brian Niccol’s compensation package has been detailed in a filing by Starbucks, revealing that a significant portion of his pay will come from equity that will vest over time based on performance targets and other metrics. In his initial year, if Starbucks achieves its goals, Niccol could potentially earn up to $116.8 million. This includes a base salary of $1.6 million annually, the chance to receive an additional $7.2 million in cash, and eligibility for yearly equity awards of up to $23 million.
As part of his transition from Chipotle to Starbucks, Niccol will be given a $10 million cash bonus and $75 million in equity to compensate for what he is giving up by leaving the burrito chain behind. The equity will vest over a three-year period and will be contingent on the performance of the company and Niccol’s tenure.
Starbucks has lauded Niccol’s leadership abilities, citing his track record of generating substantial financial returns during his time at Chipotle. In 2020, Niccol earned a base salary of $1.3 million, with a total compensation of $22.5 million, primarily from stock awards and options. His predecessor at Chipotle, Laxman Narasimhan, received a less generous pay package, with a base salary of $1.3 million, possible cash bonuses of up to $5.85 million, and equity awards of $13.6 million in fiscal 2023.
Brian Niccol’s move to Starbucks comes with a lucrative pay package that is closely tied to the company’s performance and overall success. With his proven track record of delivering strong financial results, Niccol’s compensation reflects the high expectations placed on him to drive long-term value for Starbucks, its partners, customers, and shareholders. It remains to be seen how Niccol will fare in his new role and whether he can successfully steer Starbucks towards a more prosperous future.