In order to entice Brian Niccol, the new CEO and chair of Starbucks, away from his previous position as CEO of Chipotle Mexican Grill, the company offered him a salary increase and sizable one-time incentives.
In order to entice Brian Niccol, who was formerly the CEO of Chipotle Mexican Grill, to leave his previous position as chief executive, Starbucks offered him a salary increase and sizable one-time rewards.
In a filing on Wednesday, Starbucks revealed Niccol’s forthcoming pay schedule. Equity that vests over time and is based on various indicators and corporate performance targets makes up the majority of his remuneration package. If the business meets its goals and he fully vests, his first year’s compensation may be worth up to $116.8 million.
Niccol is expected to get an annual basic pay of $1.6 million, with the possibility of earning an additional $7.2 million in cash. Additionally, he will be qualified for up to $23 million in yearly equity incentives.
Niccol will also earn a $10 million cash bonus and $75 million in equity as compensation for leaving Chipotle, less what he will lose by quitting the burrito restaurant. Depending on the success of the business and Niccol’s employment, the stock will vest over a three- to four-year period.
In a statement, Starbucks stated that Brian Niccol “has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years.” “The success of the business and all of our stakeholders is directly correlated with his pay at Starbucks. We have faith in his ability to provide our partners, clients, and shareholders with long-term, sustainable value.
Niccol made $22.5 million in total remuneration last year from his base pay of $1.3 million at Chipotle. The majority of his profits came from options and stock awards, but he also received a $5.2 million cash bonus.
The value of his total remuneration increased throughout his time at Chipotle as the stock rose by 773%.
Additionally, Niccol receives a larger compensation package than Laxman Narasimhan, his deposed predecessor. According to documents, his base pay was $1.3 million, with potential cash bonuses of up to $5.85 million and $13.6 million in stock awards. The majority of Narasimhan’s $14.6 million in salary for the fiscal year 2023 came from stock awards.
Niccol will not be obliged to move to Starbucks’ headquarters in Seattle, unlike Narasimhan, who was previously headquartered in the United Kingdom.
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