Starbucks’ new CEO will supercommute 1,000 miles from California to Seattle

Starbucks’ newly appointed CEO, Brian Niccol, will soon take the reins of the coffee giant without relocating to the company’s Seattle headquarters. Instead, Niccol will reside in Newport Beach, California, commuting over 1,000 miles to Seattle via corporate jet, according to details from his offer letter made public in a recent SEC filing.

In his new role, Niccol, 50, will receive a base salary of $1.6 million annually, with the potential to earn an annual cash bonus ranging from $3.6 million to $7.2 million, depending on his performance. Additionally, he stands to gain annual equity awards worth up to $23 million.

This isn’t the first time Niccol has secured a flexible working arrangement. When he became CEO of Chipotle in 2018, Niccol managed a similar deal. At that time, Chipotle’s headquarters were in Denver, Colorado, but Niccol lived in Newport Beach, California—close to Taco Bell’s main office in Irvine, where he had previously served as CEO. Shortly after Niccol’s appointment, Chipotle relocated its headquarters to Newport Beach.

Starbucks has also committed to setting up a remote office for Niccol in Newport Beach, complete with an assistant of his choosing. However, in line with the company’s hybrid work policy, Niccol will be expected to work from the Seattle office at least three days a week when not traveling for business.

This arrangement highlights the significant flexibility and perks often afforded to high-ranking executives, in contrast to the average employee. Since early 2023, Starbucks employees have been required to work from the office at least three days a week.

Niccol’s commuting arrangement underscores the considerable bargaining power that top executives hold, allowing them to secure highly favorable terms that are far beyond the reach of most employees.