While the offer letter does not explicitly say how many days Niccol will be based in the Seattle office.It mentions that “you will not be required to travel to the Company’s headquarters (currently located in Seattle, Washington). You agree to travel from your residence to the Company’s headquarters (and undertake other business travel) as necessary to fulfill your duties and responsibilities.”
A company spokesperson told CNBC International that when not traveling for work, Niccol is expected to work from the Seattle office at least three days a week, in accordance with Starbucks’ hybrid work policies.
“Brian will spend the majority of his time at our Seattle support center or visiting partners and customers at our stores, roasteries, roasting facilities and offices around the world,” the spokesperson said. “His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners.”
Niccol had negotiated a similar working arrangement when he was brought on as Chipotle’s CEO in 2018.
At the time, the company was based in Denver, Colorado, and Niccol, who was previously Taco Bell’s CEO, lived in Newport Beach, a 15-minute drive from Taco Bell’s main office in Irvine, California. Chipotle moved its headquarters from Denver to Newport Beach three months after announcing Niccol’s appointment.
Meanwhile, Starbucks has offered to set up a small remote office in Newport Beach, California, for Niccol.
“The company will employ an assistant of its choice for the said position, subject to the reasonable consent of the company. The maintenance of this office will be at the expense of the company,” his offer letter says.
Read also: Outgoing Chipotle CEO Brian Nicol adds $21 billion to Starbucks’ market cap
The offer letter also states: “You will be eligible to use the Company’s aircraft for (i) business travel in accordance with the Company’s travel policy, (ii) travel between your home city and the Company’s headquarters in Seattle, Washington, and (iii) your personal travel in accordance with the Company’s policies, up to a maximum amount of $250,000 per year, which amount will be based on the aggregate incremental cost to the Company.”
Niccol’s base salary has been set at $1,600,000 per year, prorated for any partial years based on actual days of employment.
You are also eligible for an annual cash bonus opportunity, with a target of 225% of base salary (the Target Incentive) and a maximum of 450% of base salary, the amount of the annual cash bonus being based on performance as determined in accordance with the Company’s Executive Management Bonus Plan (or any successor agreement).
In the upcoming fiscal year 2025, he will also be eligible for annual equity awards (on a fiscal year basis) with a target grant date fair value of $23,000,000. Starbucks’ new CEO will also receive a cash signing bonus of $10,000,000.
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