• 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

LimeWire acquires Fyre Festival, asking ‘What Could Possibly...

September 17, 2025

Convenience stores are eating fast-food chains’ breakfast

September 15, 2025

Trump administration ramps up pressure on Labor Department...

September 11, 2025

Kenvue stock drops 10% on report RFK Jr....

September 8, 2025

Mortgage rates see biggest one-day drop in over...

September 5, 2025

Paramount mandates 5-day-a-week return to office ahead of...

September 5, 2025

Apple has survived Trump’s tariffs so far. It...

September 4, 2025

Trump family’s American Bitcoin makes stock market debut

September 4, 2025

Disney to pay $10 million to settle FTC...

September 4, 2025

Crash victims’ families prepare to make what could...

September 3, 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

  • Lara Trump to host weekend show on Fox News

    February 6, 2025
  • Faith in DOJ plummets as Biden, pardoning Hunter, joins Trump in denouncing the department

    December 4, 2024
  • Trump pledges to release files on JFK, MLK and RFK assassinations

    January 20, 2025
  • Palantir stock continues slide on Thursday: why these analysts remain bullish

    February 21, 2025
  • Ukraine’s Zelenskyy replaces top military official ahead of Trump-Putin call

    March 18, 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

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

    July 19, 2024
  • 3

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

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

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

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,052)
  • Investing (634)
  • Stock (926)

Latest Posts

  • Trump cautions ‘bad things’ in store if Iran won’t negotiate as Islamic Republic touts ‘Missile City’

    March 28, 2025
  • Trump ups his ante with September fundraising haul

    October 2, 2024
  • ‘Ultra-right’: Trump budget chief pick Russell Vought faces fire from Dem senators

    January 23, 2025

Recent Posts

  • Trump meets Ukraine’s Zelenskyy at Trump Tower, says Russia’s war must end with ‘fair deal’

    September 27, 2024
  • DAVID MARCUS: Why nobody wants to cut the national debt despite everyone saying they should

    May 28, 2025
  • What is the Electoral College? How does it work?

    November 3, 2024

Editor’s Pick

  • Vice President JD Vance to speak at CPAC’s opening day

    February 18, 2025
  • RBC downgrades Moderna and cuts price target by 28%: Should you exit?

    August 5, 2024
  • The two-day or less shipping Americans have come to expect faces a climate change threat

    August 26, 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