• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Starbucks’ new CEO will supercommute 1,000 miles from California to Seattle

by August 21, 2024
written by August 21, 2024

Newly appointed Starbucks CEO Brian Niccol won’t be required to relocate to the company’s headquarters in Seattle when he joins the coffee giant next month. 

Instead, Starbucks says Niccol can live in his home in Newport Beach, California and commute to Starbucks’ head office 1,000 miles away on a corporate jet, according to the new CEO’s offer letter, which was made public in an SEC filing last week.

In his new role, Niccol, 50, will be paid a base salary of $1.6 million annually and has the opportunity to earn an annual cash bonus that could range from $3.6 million to $7.2 million depending on his performance. He will also be eligible for annual equity awards worth up to $23 million.

Niccol successfully negotiated a similar deal when he became the CEO of Chipotle in 2018. 

At the time, the fast-casual chain was headquartered in Denver, Colorado, and Niccol — who served as CEO of Taco Bell before his stint at Chipotle — lived in Newport Beach, a 15-minute drive from Taco Bell’s main office in Irvine, California. Chipotle moved its headquarters from Denver to Newport Beach three months after announcing Niccol’s appointment.

In the offer letter, Starbucks also notes that it will set up a remote office for Niccol in Newport Beach along with an assistant of his choosing. 

When he is not traveling for work, however, Niccol will still be expected to work from the Seattle office at least three days a week in alignment with Starbucks’ hybrid work policies, a company spokesperson tells CNBC Make It.

“Brian’s primary office and a majority of his time will be spent in our Seattle Support Center or out visiting partners and customers in our stores, roasteries, roasting facilities and offices around the world,” the spokesperson added. “His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners.”

Starbucks employees have been required to work from the office at least three days a week since early 2023.

Niccol’s arrangement underscores the gulf in bargaining power between high-ranking executives and the average employee in terms of flexibility.

While rank-and-file employees might not be able to demand the flexibility to work remotely from a different state, companies make exceptions for senior-level employees to attract and retain top talent, says Raj Choudhury, a professor at Harvard Business School who studies remote work.

Choudhury says there is a growing number of CEOs who are “working from anywhere,” though there is no comprehensive research on the topic. 

“It’s becoming increasingly common because we’re still in a competitive labor market,” he explains. “Executives aren’t accepting job offers if flexibility isn’t on the table.” 

Victoria’s Secret made a similar concession last week when it hired Hillary Super from Fenty x Savage, Rihanna’s lingerie brand, as its new CEO. 

When Super starts in September, she will work from the retailer’s New York City offices instead of its headquarters near Columbus, Ohio, traveling to Columbus as needed, according to her employee agreement.

Despite these recent instances, it’s still hard to draw any definitive conclusions about CEOs’ remote work preferences.

Although some CEOS — including Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon — are drawing a hard line on return-to-office policies, other research has indicated that bosses aren’t thrilled with the loss of remote work.

Choudhury sees Niccol’s arrangement at Starbucks as an example of a company taking a “smart risk” to snag a star executive. 

The coffee giant’s performance has struggled this year, hurt by weak sales in the U.S. and China, its two largest markets, CNBC reports. Starbucks shares have fallen 21% during its current CEO Laxman Narasimhan’s tenure. 

Niccol has a strong track record of turning around troubled companies: As CEO of Chipotle, he helped the chain rebound from its foodborne illness scandal and led its restaurants through the pandemic. During his time at the restaurant chain, its stock soared 773%, CNBC reports.

“Starbucks based its process of selection on this person’s prior record of boosting restaurant-based companies, not their location,” says Choudhury. “I expect more companies will take notice and follow suit: If you want to attract and retain the best talent, you have to be open to flexible work arrangements.”

Such an emerging trend could have benefits for desk workers craving flexibility, Choudhury adds. 

“If more C-suite leaders start working remotely, middle managers might be inspired to start trying it, as culture changes start at the top,” he says. “This is a great opportunity for Starbucks to experiment with offering employees, wherever possible, the same degree of flexibility it’s giving its executives.”

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
The dollar index remains in a bearish trend this week
next post
Michelle Obama tells DNC her parents were ‘suspicious’ of the wealthy despite own $70M net worth, luxury homes

related articles

Dick’s Sporting Goods stands by full-year guidance —...

May 28, 2025

Macy’s CEO says retailer will hike some prices...

May 28, 2025

23andMe to delist from Nasdaq, deregister with SEC

May 28, 2025

Walmart fined for shipping realistic toy guns to...

May 28, 2025

Why Trump’s iPhone tariff threat might not be...

May 25, 2025

Trump clears Nippon merger with U.S. Steel

May 24, 2025

United Airlines reaches ‘industry-leading’ labor deal with flight...

May 24, 2025

FTC drops Biden-era suit accusing Pepsi of price...

May 23, 2025

How UnitedHealthcare became the face of America’s health...

May 22, 2025

Armenian organized crime rings charged with stealing $83...

May 22, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Europe’s inflation may rise due to Olympics and Taylor Swift events, but UBS claims local wallets will remain unscathed

    August 12, 2024
  • Putin ‘doesn’t want peace,’ EU chief diplomat warns ahead of Trump, Zelenskyy deal

    February 28, 2025
  • BofA double upgrades CH Robinson Worldwide to Buy: Should you invest?

    July 23, 2024
  • S&P 500 climbs for best day since early June as Nvidia shares lead tech turnaround

    July 23, 2024
  • Biden fails to remember when son Beau died and Trump’s election year in leaked Hur interview audio

    May 17, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,696)
  • Investing (624)
  • Stock (770)

Latest Posts

  • Trump announces new picks including deputy director of the CIA, chief Pentagon spokesman

    February 4, 2025
  • Denny’s says some locations will start charging extra for eggs amid nationwide shortage

    February 25, 2025
  • House Republicans accuse White House of releasing ‘false transcript’ of Biden’s ‘garbage’ remarks

    October 30, 2024

Recent Posts

  • Stellar and Bitcoin Cash: Stellar launches a bullish option

    August 20, 2024
  • Trump administration offers buyouts to federal employees, including remote workers: ‘Deferred resignation’

    January 29, 2025
  • Federal judge hints she will continue blocking Trump from firing head of whistleblower protection agency

    February 26, 2025

Editor’s Pick

  • ‘Crush liberal dominance’: Conservative funder urges leaner, meaner posture for activist groups

    September 15, 2024
  • Republicans weigh in on what they hope and expect to hear in Trump’s RNC speech: ‘This is his moment’

    July 18, 2024
  • Boeing freezes hiring in sweeping cost cuts as it grapples with factory worker strike

    September 17, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock