Starbucks CEO Brian Niccol Receives Massive Compensation Package
Starbucks paid new chief executive officer Brian Niccol about US$96 million for four months of work last year, one of the biggest compensation packages in corporate America.
Compensation Breakdown
About 94 per cent of Niccol’s pay came from stock awards, according to a filing. Niccol, who joined Starbucks in early September, also got a US$5 million bonus after his one-month anniversary with the company.
Reason for High Compensation
Starbucks ousted its prior CEO last year after a string of sales declines. Niccol was recruited from Chipotle Mexican Grill to turn the business around. The coffee chain did not require Niccol to move to Seattle, where Starbucks is based, and agreed to cover temporary housing costs in the area as well as use of the company jet.
Perks and Expenses
Friday’s (Jan 24) filing shows Starbucks paid more than US$143,000 in housing expenses, about half of which were tax-related payments. Niccol also spent about US$72,000 flying between his home in southern California and Seattle, and about US$19,000 related to other personal use of company aircraft.
Ranking Among Highest-Paid CEOs
Bloomberg estimated Niccol’s annual pay package to be valued at about US$113 million at the time of his hiring, with a large part tied to equity to replace awards from his prior employer that he had to relinquish. He ranks near the top 20 highest-paid CEOs, according to the Bloomberg Pay Index.
Conclusion
Starbucks CEO Brian Niccol’s massive compensation package has raised eyebrows in the corporate world. With a total compensation of US$96 million for four months of work, Niccol’s pay is one of the highest in corporate America. The package includes a significant amount of stock awards and a US$5 million bonus, as well as perks such as temporary housing costs and use of the company jet.
FAQs
Q: How much did Starbucks pay CEO Brian Niccol for four months of work?
A: Starbucks paid CEO Brian Niccol about US$96 million for four months of work.
Q: What percentage of Niccol’s pay came from stock awards?
A: About 94 per cent of Niccol’s pay came from stock awards.
Q: How does Niccol’s compensation package compare to other CEOs?
A: Niccol’s annual pay package is valued at about US$113 million, ranking him near the top 20 highest-paid CEOs, according to the Bloomberg Pay Index.
