Starbucks has announced that its new chief executive, Brian Niccol, will have the use of a corporate jet for his 1,000-mile commute from his home in Newport Beach, California to the company’s headquarters in Seattle, Washington. The 50-year-old, who will begin his role next month, will be expected to work at least three days a week at the headquarters, with the rest of his time spent travelling for work.
The coffee chain, known as the world’s largest, has faced criticism for this decision, as it goes against their pledge to reduce their carbon footprint by 2030. Critics argue that using a private jet for personal and business travel undermines Starbucks’ efforts to be environmentally friendly, such as their commitment to eliminate plastic straws.
In addition to the use of the corporate jet, Niccol’s compensation package includes a base annual salary of $1.6 million (£1.2 million) and the potential to earn up to $100 million (£76 million) through equity and bonus payments in his first year. He will also have access to a remote office in Newport Beach and can choose his own assistant.
Niccol’s appointment comes after the sudden departure of Laxman Narasimhan as the previous CEO of the burrito chain Chipotle. Niccol, who has held senior positions at major US food chains including Taco Bell and Pizza Hut, is credited with turning around Chipotle’s business and nearly doubling their revenue during his tenure.
Despite Niccol’s success in his previous roles, the company’s decision to offer him these perks has sparked backlash online and from campaign groups. Climate charity Possible’s Alethea Warrington called the plan “an utterly grotesque mockery” of Starbucks’ claims to be a responsible corporate citizen when it comes to the climate. On social media, users expressed their disapproval, with one stating, “No company who truly cares about the climate would agree to this.”
A spokesperson for thinktank the High Pay Centre also weighed in, saying, “It’s important in business leadership that employees can see that it’s not one rule for them and one rule for their bosses.” They added that it would be perceived as unfair and poor leadership if Niccol is not able to match the office presence expected of other employees.
In response to the criticism, a Starbucks spokesperson stated that Niccol’s compensation is tied to the company’s performance and the success of all stakeholders. They also defended the decision, stating that the majority of Niccol’s time will be spent at the Seattle Support Center or visiting partners and customers around the world. The spokesperson also confirmed that Niccol will have a residence in Seattle and will meet or exceed the hybrid work guidelines and expectations set for all employees.
