Amidst a whirlwind of corporate shakeups, Starbucks has announced its incoming CEO who could potentially rake in over US$100 million in his first year. Brian Niccol, known for his remarkable success in reviving struggling companies like Taco Bell and Chipotle, will be taking the helm at the global coffee giant on September 9.
Here’s what you need to know about this high-powered executive and his upcoming role at Starbucks:
- Proven Track Record: Niccol has a strong reputation for turning around companies facing difficulties, such as Chipotle during a tumultuous period marked by food-borne illness outbreaks.
- Impressive Achievements: Since Niccol’s appointment at Chipotle, the chain’s revenue has nearly doubled through a combination of innovative products and employee-focused initiatives like tuition assistance programs.
- Financial Incentives: Starbucks’ filing with the US Securities and Exchange Commission revealed that Niccol will receive a hefty package comprising a cash signing bonus of US$10 million and equity awards worth US$75 million, with additional potential for surpassing US$100 million based on performance.
- Salary Breakdown: Niccol’s base salary will be set at US$1.6 million with opportunities for additional bonuses that could reach up to 450% of his base salary. In the long term, he will also be eligible for annual equity awards valued at up to US$23 million.
- Remote Work Arrangement: Surprisingly, Starbucks has allowed Niccol to continue residing in Newport Beach, California, without relocating to Seattle where the company is headquartered. A remote office will be set up in Newport Beach, and Niccol will commute as needed.
As Starbucks navigates these changes, current CFO Rachel Ruggeri will temporarily assume the role of CEO until Niccol’s official start date in early September. With Niccol’s wealth of experience and the high stakes involved, all eyes are on Starbucks to see how this leadership transition will impact the future of the iconic coffee brand.
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