Starbucks CEO Brian Niccol has been paid approximately $96 million in total compensation after just four months on the job — quickly becoming one of the highest-paid executives in corporate America.
His substantial pay package, which detailed in a recent securities filing with the SEC, includes buyouts of Chipotle Mexican Grill shares awarded during his tenure as CEO of the burrito chain.
Despite working only a few weeks during Starbucks’s fiscal year ending September 29, Niccol received $61,538 in salary, a $5 million signing bonus and $90 million in stock awards, according to filings cited by the Wall Street Journal.
Meanwhile, Starbucks under Niccol is implementing changes to enhance the in-store experience, including offering ceramic mugs for dine-in customers, enforcing stricter policies on restrooms and free water cups and reviving the condiment bar with unlimited coffee refills.
Niccol aims to reposition Starbucks as a premium café destination to counter declining sales and shifting consumer habits.
The company is also pledging to make coffee for in-store customers in four minutes or less while addressing security concerns by limiting non-paying visitors, which has sparked mixed reactions among employees, according to Bloomberg News.
Starbucks also had their baristas undergo a three-hour training in which they were encouraged “to warmly acknowledge and engage with every person in our store, treating them with kindness, respect, and assuming positive intent,” a company spokesperson told Bloomberg News.
As investors await the company’s earnings report, analysts suggest these changes reflect a broader strategy to improve customer experience and perception amid affordability concerns.
Much of Niccol’s stock compensation reflects forfeited Chipotle shares, which Starbucks compensated him for as part of his transition.
The package also consists of restricted stock units that vest over time and performance-based awards.
The pay disparity has drawn attention, particularly given Starbucks’s history of sizable CEO compensation.
Niccol’s predecessor, Laxman Narasimhan, earned $22 million during the company’s 2024 fiscal year before being ousted.
Kevin Johnson, who was CEO before Narasimhan was brought on board in late 2022, received $62 million in 2021.
Niccol’s package, however, dwarfs both.
Starbucks’ hiring of Niccol generated headlines because of a controversial commuting arrangement that allowed him the option of working from his home state of California while traveling to company headquarters in Seattle via corporate jet.
Starbucks reported that it incurred $72,398 in air travel expenses between his home and work locations within weeks of him assuming the role.
Additionally, the company paid $143,567 in temporary housing costs.
Starbucks has defended the compensation package, stating that Niccol’s experience is crucial in helping the company navigate a difficult period.
The coffee chain has faced declining sales and operational inefficiencies, and Niccol has prioritized making Starbucks cafes more inviting while attempting to streamline operations.
However, the incoming CEO has already hinted at major corporate layoffs, which are expected to be announced by March, adding to employee concerns about job security.
The scale of Niccol’s compensation has also fueled criticism over executive pay disparities.
Starbucks disclosed that Niccol’s total earnings were 6,666 times that of its median US barista, who earned $14,674 in salary and stock last year.
This ratio is among the highest recorded among public companies, rivaling firms like Live Nation and Aptiv.
By comparison, Tesla CEO Elon Musk had a record-setting CEO-to-worker pay ratio of 40,668 in 2018, driven by a massive stock award that was later overturned by a Delaware judge.
Niccol’s pay ratio reignites ongoing debates about income inequality and executive compensation, particularly within consumer-facing brands like Starbucks, where frontline workers earn significantly less than corporate leaders.
As Niccol continues to reshape the company, the controversy surrounding his pay and perks is unlikely to subside.
With cost-cutting measures on the horizon and restructuring underway, Starbucks employees and investors alike will be closely watching how his leadership unfolds.
The Post has sought comment from Starbucks.