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.
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.
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 the Seattle, where Starbucks is based, and agreed to cover temporary housing costs in the area as well as use of the company jet.
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.
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. BLOOMBERG
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