Daily Washington Insider
  • Business
  • World
  • Science
  • Investing

Daily Washington Insider

  • Business
  • World
  • Science
  • Investing
Business

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

by admin August 21, 2024
August 21, 2024
Starbucks’ new CEO will supercommute 1,000 miles from California to Seattle

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
FacebookTwitterGoogle +Pinterest
previous post
Nicaragua forces 1,500 church and civil society groups to close
next post
How the Inflation Reduction Act sparked a manufacturing and clean energy boom

You may also like

Costco cracks down on sharing membership cards

August 9, 2024

Berkshire Hathaway employee wins $1 million in Warren...

March 27, 2025

Amazon expects to cut corporate jobs as it...

June 19, 2025

OpenAI tops 3 million paying business users, launches...

June 5, 2025

Paramount and Skydance inch closer to a merger...

April 30, 2024

Pfizer CEO says tariff uncertainty is deterring further...

April 30, 2025

Bad economic news has been good for stocks,...

June 6, 2024

Disney rolls out line-skipping park passes costing up...

October 18, 2024

Nissan issues ‘do not drive’ warning for 84,000...

May 31, 2024

Burning rubber: How auto insurance prices have fueled...

April 11, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Hong Kong plans to install thousands of surveillance cameras. Critics say it’s...

    • 2

      UN experts urge Thailand not to deport dozens of Uyghurs to China where they face ‘real risk of torture’

    • 3

      China executes man who plowed car into crowds in deadliest attack in a decade

    • 4

      Trump has assembled a team of China hawks. How will Beijing respond?

    • 5

      Tartana Drilling to Verify Upgrading of 45,000 Tonne Copper Resource

    Categories

    • Business (1,300)
    • Investing (3,411)
    • Science (605)
    • World (3,677)
    Footer Logo

    Disclaimer: dailywashingtoninsider.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 © 2024 dailywashingtoninsider.com | All Rights Reserved