Starbucks new CEO, Brian Niccol, will use a corporate jet for commuting instead of relocating, sparking online discussion on social media.
New CEO was offered the use of corporate jet to go to work instead of relocating
Starbucks has recently appointed a new CEO, Brian Niccol, who was the former CEO of Taco Bell Corp.
He will be commuting over 1,000 miles to work using the company’s private jet instead of relocating across the country.
This unprecedented arrangement was outlined in Niccol’s offer letter, which was made public in a filing with the SEC.
According to the offer letter, Niccol will be based in his home in Newport Beach, California.
He will need to work from Starbucks’ headquarters in Seattle for at least three days a week.
“Brian’s primary office and a majority of his time will be spent in our Seattle Support Center.
He will also visit partners and customers at our stores, roasteries, roasting facilities, and offices around the world,” a spokesperson said.
“His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners,” he added.
The company will also establish a small remote office for him in Newport Beach, which will be maintained at their expense.
The basic compensation of the new CEO
The offer letter also states that Niccol will be able to appoint an assistant of his choosing to help him manage operations from the remote office in Newport Beach.
Niccol’s commute will be done on the company’s private aircraft, which he is also permitted to use for other business-related travel.
The offer even allows him to use the jet for personal travel up to a maximum cost of $250,000 per year, following the company’s policies.
In addition to the flexible work arrangement, Niccol’s compensation package is also quite substantial.
He will receive a base salary of $1.6 million per year, with the potential to earn an annual cash bonus of up to $7.2 million, depending on his performance.
He will also be eligible for annual equity awards worth up to $23 million.
Starbucks embraces flexible work for new CEO
This decision by Starbucks to accommodate their new CEO’s preference to remain based in California has raised some eyebrows.
However, a company spokesperson has stated that Niccol’s primary office will be the Seattle Support Center.
He will also spend a significant amount of time visiting Starbucks’ stores, roasteries, and offices worldwide.
The move is a shift towards more flexible work arrangements, becoming increasingly common in the corporate world.
Professor Raj Choudhury from Harvard Business School believes that more companies will follow Starbucks’ lead.
They may accommodate top talent’s preferences for remote work or flexible schedules to attract and retain them.
“Starbucks based its process of selection on this person’s prior record of boosting restaurant-based companies, not their location.
“I expect more companies will take notice and follow suit.
To attract and retain the best talent, you need to be open to flexible work arrangements,” Raj Choudhury said.