Starbucks' New CEO Opts For Daily 1,600 Km Private Jet Commute Instead Of Relocating

Brian Niccol will make use of a corporate jet for his commute, ensuring he meets the firm's hybrid work policy, which mandates that executives work from the Seattle office at least three days a week

Starbucks’ incoming CEO, Brian Niccol, will embark on an extraordinary daily commute of 1,600 kilometers as he steps into his new role next month. The 50-year-old, who resides in California, will travel daily to the company’s headquarters in Seattle. According to his offer letter, Niccol will make use of a corporate jet for his commute, ensuring he meets the company's hybrid work policy, which mandates that executives work from the Seattle office at least three days a week.

Niccol, whose compensation package includes a $1.6 million base salary, can also earn a performance-based cash bonus ranging from $3.6 million to $7.2 million annually. In addition, he will be eligible for equity awards valued up to $23 million annually. This is not the first time Niccol has arranged such a unique commuting arrangement. During his tenure as CEO of Chipotle in 2018, he brokered a similar deal. Chipotle, headquartered in Colorado at the time, relocated its headquarters to California shortly after Niccol's appointment.

A Starbucks spokesperson confirmed to CNBC that Niccol’s primary office will be in the Seattle Support Center, but he will also spend significant time traveling to stores, roasteries, and other facilities globally. "His schedule will exceed our hybrid work guidelines and workplace expectations for all partners," the spokesperson added.

Niccol’'s arrangement is not an anomaly among high-ranking executives who often command more favorable working terms. For example, Hillary Super, the CEO of Rihanna’s Savage x Fenty lingerie brand, was granted a similar concession when she became CEO of Victoria’s Secret. She continues to work out of New York City despite the company’s headquarters being located near Columbus, Ohio.

Not all executives, however, have the luxury of such accommodations. Amazon’s Andy Jassy and JPMorgan Chase’s Jamie Dimon are currently advocating for a return to more traditional in-office work policies.

Niccol's new role at Starbucks comes at a critical time, with the coffee giant experiencing a dip in sales in both the US and China, its two largest markets. Under the leadership of current CEO Laxman Narasimhan, the company has faced declining revenue.

Niccol, who boasts a reputation for turning around struggling companies, is seen as the right candidate to steer Starbucks back on track. During his time at Chipotle, the fast-food chain’s stock reportedly soared by an impressive 773 per cent.