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Luring a CEO from another company to execute a turnaround is pretty expensive.\u00a0<\/p>\n
Starbucks<\/a> announced<\/a> on Wednesday that it would offer new CEO<\/a> Brian Niccol, 50, roughly $113 million in total compensation<\/a> including a $10 million sign-on bonus, a $75 million equity grant, and, starting in fiscal 2025, a grant that could be worth $23 million per year. That\u2019s on top of Niccol\u2019s annual $1.6 million salary and an annual cash bonus that could range from $3.6 million to $7.2 million, depending on Niccol\u2019s performance.\u00a0<\/p>\n To boot, Niccol\u2019s offer letter<\/a> states he won\u2019t be required to relocate to the company\u2019s headquarters in Seattle, although he agreed to commute from his residence as necessary. Chipotle Mexican Grill<\/a> is headquartered in Newport Beach, Ca. Until he gets permanent secondary housing in Seattle, Starbucks agreed to cover the cost of any temporary housing arrangements and a personal chauffeur to drive Niccol around Seattle. Starbucks also promised him it would establish a small remote office in Newport Beach, on Starbuck\u2019s dime. He can also use Starbucks\u2019 plane to travel between his house and HQ.\u00a0<\/p>\n Niccol is replacing departing CEO Laxman Narasimhan<\/a>, who led the macchiato maker for 17 months and oversaw a share price decline of 23.9%. That led to a disappointing $32 billion drop in market cap.<\/p>\n Much of Niccol\u2019s compensation from Starbucks is intended to replace the pay he\u2019s leaving behind at Chipotle, the burrito-bowl restaurant empire he\u2019s led for the past six years. At Chipotle, Niccol drove stock price growth of 800% and saw profits increase nearly sevenfold, said Starbucks in a statement<\/a>. The board at the coffee giant is hoping he can bring the same growth to the struggling chain.\u00a0<\/p>\n During the pandemic, Starbucks pivoted to remote work for office employees. Three years on, founder Howard Schultz asked employees within commuting distance to start coming to work a minimum of three days per week<\/a>. At the time, Schultz said <\/a>that remote work had \u201cunintended consequences\u201d and that the company could lose the art of collaboration and a connection to its shared mission.\u00a0<\/p>\n Starbucks did not immediately respond to a request for comment.\u00a0<\/p>\n In addition to a perk of up to $250,000 in personal travel on the corporate jet, Niccol will get access to Starbucks\u2019 executive physical program. However, as is customary at Starbucks, he will now be prohibited from trading in coffee and dairy futures<\/a>.<\/p>\n<\/div>\nRecommended Newsletter:<\/strong> CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n<\/div>\n