Starbucks offered recent CEO and Chairman Brian Niccol a raise and substantial one-time bonuses to maneuver him from his previous position as CEO of Chipotle Mexican Grill.
On September 9, Niccol will officially take the reins of the struggling coffee chain. As CEO, he can be tasked with turning around the corporate's sagging sales, improving the client experience in its stores and determining what to do about its ailing China business. It's a giant undertaking – and he'll be well compensated for it.
Starbucks announced Niccol's future pay plan in a press release on Wednesday. The majority of his compensation package will consist of stock that can vest over time and is predicated on company performance goals and other metrics. If the corporate hits its targets, his pay package may very well be value as much as $116.8 million in his first yr.
Niccol will receive a base salary of $1.6 million per yr and has the chance to earn as much as $7.2 million more in money. He can also be eligible for annual stock awards valued at as much as $23 million.
And for his departure from Chipotle, Niccol will receive a bonus of $10 million in money and $75 million in stock to offset what he loses by leaving the burrito chain. The stock can be granted over a three-year period, depending on company performance and Niccol's length of service.
“Brian Niccol has proven himself to be one of the most effective leaders in our industry, delivering significant financial returns over many years,” Starbucks said in an announcement. “His compensation at Starbucks is directly tied to the performance of the company and the collective success of all of our stakeholders. We are confident in his ability to create long-term, lasting value for our partners, customers and shareholders.”
At Chipotle, Niccol earned a base salary of $1.3 million last yr and total compensation of $22.5 million. The majority of his income got here from stock grants and options, but he also received a money bonus of $5.2 million.
During his tenure at Chipotle, the stock rose 773%, increasing the worth of his total compensation.
Niccol's pay package can also be more generous than that of his ousted predecessor, Laxman Narasimhan. His base salary was $1.3 million, with potential money bonuses of as much as $5.85 million and stock awards of $13.6 million, filings show. In fiscal 2023, Narasimhan's compensation was $14.6 million, mostly from stock awards.
Unlike Narasimhan, who previously worked within the UK, Niccol doesn’t must move to Starbucks' headquarters in Seattle.
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