Agencies
The incoming chief executive of U.S. coffee chain Starbucks, Brian Niccol, was under fire shortly after the Seattle-based company announced he would assume the role as it was revealed he was offered to commute around 1,000 miles (1,600 kilometers) by private jet.
Social media users quickly criticized Starbucks over the move in light of its sustainability efforts elsewhere, such as banning plastic straws.
Niccol’s job offer said he will not have to relocate to the company’s headquarters in Seattle, Washington, from his family home in Newport Beach, California, when he takes up his new role on Sept. 9.
The document states: "You agree to commute from your residence to the company’s headquarters (and engage in other business travel) as is required to perform your duties and responsibilities.”
Starbucks has also offered the incoming boss a "small remote office in Newport Beach,” which will be "maintained at the expense of the company.”
The offer letter adds that the 50-year-old will be eligible to use the corporate aircraft for "business-related travel,” for "travel between the city of residence and the company’s headquarters,” and for "your personal travel” by company policies, up to $250,000 per year.
A company spokesperson told broadcaster CNBC earlier this week that Niccol will be expected to work from the Seattle office at least three days a week in line with its hybrid work policies.
Critics online accused the firm of hypocrisy, with some calling for a boycott of the chain.One user said: "Seriously? New CEO Brian Niccol to take 1,000-mile private jet commute?
In an age where the richest are proven primary contributors to damage to the environment?
I imagine you have lost a few customers through this – you’ve certainly lost me.” Another posted: "The new Starbucks CEO is ‘supercommuting’ 1,000 miles to Seattle on a private jet to work, so don’t be too harsh on that waitress who gave you a plastic straw when you didn’t want one.”
Other online critics focused on how much Niccol is set to get paid in his new job, where he could make well more than $100 million in his first year.
Starbucks has said Niccol will receive a cash signing bonus of $10 million as well as $75 million in equity to make up for what is being forfeited by his abrupt departure as chief executive at Chipotle.
Meanwhile, his annual base salary will be $1.6 million, with the potential for an estimated bonus of up to $8.8 million and Starbucks shares of up to $23 million a year from 2025.
Former U.S. Labor Secretary Robert Reich posted on X: "How come we never talk about CEO pay when we talk about rising prices?” Another X user wrote: "Starbucks would like its customers to pay hyper prices only to use paper straws to save the environment while the CEO flies 1600 kilometers x 3 days a week on a private jet.”
Starbucks announced earlier this month that it was replacing chief executive Laxman Narasimhan with Niccol, a move which saw the company’s shares jump more than 20%.
The firm hopes Niccol – who is among the most highly sought-after corporate executives due to his track record of turning around firms that have hit a rough patch – can revive fading sales and re-establish Starbucks as a destination where customers are willing to pay premium prices.
However, compared with Chipotle, Niccol faces far larger and deeper challenges at Starbucks, which has 38,000 stores worldwide and has to work out how to get inflation-weary customers back into stores for its pricey drinks.