The coffee chain did not require Brian 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. PHOTO: STARBUCKS
Last year, Starbucks gave its new CEO, Brian Niccol, one of the largest remuneration packages in corporate America, totalling almost US$96 million for four months of labor. According to a filing, stock awards accounted for almost 94% of Niccol’s compensation. After one month with Starbucks, Niccol, who started working there in early September, also received a US$5 million incentive.
Last year, Starbucks fired its previous CEO following a series of sales drops. In an attempt to revive the company, Niccol was hired from Chipotle Mexican Grill. The coffee firm agreed to pay for Niccol’s temporary living expenses in the region and to use the corporate aircraft, but it did not force Niccol to relocate to Seattle, where Starbucks is headquartered.
Starbucks spent about US$143,000 for housing charges, with over half of those payments being tied to taxes, according to the company’s report on Friday, January 24. Along with spending over US$19,000 on additional personal usage of corporate aircraft, Niccol also spent roughly US$72,000 traveling from his home in southern California to Seattle.
At the time of his employment Niccol’s yearly salary package was valued at around US$113 million, according to Bloomberg News, with a significant portion connected to stock to match awards from his previous firm that he had to give up. The Bloomberg Pay Index places him in the top 20 highest-paid CEOs.
Source: Business Times
