The newly appointed CEO of Starbucks, Brian Niccol, is facing scrutiny for his decision to commute nearly 1,000 miles from his residence in Newport Beach, California, to the company’s headquarters in Seattle aboard a corporate jet.
Critics have expressed concern on social media over what they perceive as a contradiction between Starbucks’ commitment to environmental sustainability and the travel practices of its upper management.
Niccol is set to officially step into his role on September 9. According to his employment agreement, he is not required to relocate but is expected to commute regularly to fulfill his responsibilities. The contract allows him to utilize company aircraft for “business-related travel” and commuting between his home and the headquarters.
In a move to accommodate his commute, Starbucks plans to establish a small remote office in Newport Beach for Niccol’s use while working from California. The company’s hybrid work policy mandates employees to be present in the office at least three days a week, although it remains unclear if these requirements will apply to Niccol or if working from the remote office suffices.
The specifics of Niccol’s employment have ignited a backlash online. Users have raised eyebrows at the apparent ease provided to top executives versus traditional employees, particularly in light of the company’s recent sustainability messaging.
Additionally, discussions surrounding executive compensation have resurfaced. Niccol’s annual base pay is reported to be $1.6 million, with potential bonuses and stock options that could increase his earnings significantly. This raises questions about the relationship between soaring executive pay and rising consumer prices.
Starbucks recently announced Niccol’s appointment as CEO, succeeding Laxman Narasimhan, amid efforts to rejuvenate lagging sales. Before joining Starbucks, Niccol was at the helm of Chipotle, where he led significant financial recovery and expansion, positioning the brand as a standout in a challenging restaurant industry environment.
