Incoming Starbucks CEO might make effectively in extra of $100 million in his first yr with the corporate underneath an incentive-laden contract, and he won’t be required to relocate from his residence in California to Seattle, the house of the worldwide espresso big.
Starbucks introduced on Tuesday that Niccol would turn into its chairman and CEO, taking up from Laxman Narasimhan, who stepped down abruptly after spending slightly greater than a yr as the corporate’s high government. Niccol will turn into Starbucks’ chairman and CEO on Sept. 9.
Niccol is among the many principally extremely wanted company executives after establishing a observe file of success in turning round firms which have hit a tough patch, together with Taco Bell and, most lately, Chipotle.
Niccol took the highest job on the California chain in 2018 when Chipotle was being roiled by a sequence of foodborne sickness outbreaks that had sickened greater than 1,000 of its prospects over a number of years.
Income at Chipotle has almost doubled since his arrival after he energized product innovation and on the identical time, instituted worker advantages like a program that pays workers’ faculty tuition prices at sure colleges.
Starbucks is relying on Niccol to revive fading gross sales and re-establish the corporate as a vacation spot the place prospects are prepared to pay premium costs for its merchandise.
In a submitting with the Securities and Alternate Fee late Wednesday, Starbucks stated that the 50-year-old Niccol will obtain a money signing bonus of $10 million and fairness awards totaling $75 million as soon as he joins the corporate. The fairness element of his pay package deal will vest over time and is contingent on assembly efficiency targets.
If Starbucks meets these targets and different targets, his pay might simply surpass $100 million in his first yr.
Niccol’s annual base wage can be $1.6 million. He’ll even have an annual money incentive alternative at a goal of 225% of his base wage and a most of 450% of base wage. If he achieves the utmost incentive, it will be about $8.8 million.
Beginning in fiscal 2025, Niccol can be eligible to obtain annual fairness awards value as much as $23 million.
Maybe simply as notable, Starbucks just isn’t requiring that Niccol relocate to Starbucks headquarters in Seattle, saying he can stay in Newport Seaside, California, the place he at the moment lives and the place Chipotle relies.
In response to a regulatory submitting, Starbucks will assist create, with help from Niccol, a small distant workplace in Newport Seaside and the corporate will rent an assistant for Niccol at that location.
Niccol will commute to Seattle as wanted, in addition to embark on every other enterprise journey that’s deemed vital.
Starbucks Chief Monetary Officer Rachel Ruggeri is serving because the interim CEO till Niccol arrives in early September.
Shares of Starbucks rose barely earlier than the market open on Thursday.
