Starbucks CEO awarded $129.2 million in first four months on the job

NEW YORK – Starbucks Corp granted its new chief executive Brian Niccol about US$96 million (S$129.2 million) after four months of work in 2024, one of the biggest compensation packages in corporate America.

About 94 per cent of Mr Niccol’s pay came from stock awards, according to a filing on Jan 24. Most of them are tied to performance and the rest are time-based, vesting over a three-year period.

Mr Niccol, who joined Starbucks in early September, also received a US$5 million sign-on bonus after his one-month anniversary with the company. 

Starbucks ousted its previous CEO in 2024 after a string of sales declines.

Mr Niccol was recruited from Chipotle Mexican Grill to turn the business around. The coffee chain did not require him 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.

The stock exchange filing showed that Starbucks paid more than US$143,000 in housing expenses, about half of which were tax-related payments. Mr 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 Mr 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.

In the filing, Starbucks said Mr Niccol was a “highly sought-after, effective leader with a proven track record”, with the experience to drive the chain’s growth. BLOOMBERG