Brian Niccol, Chief Govt Officer of Chipotle
Anjali Sundaram|CNBC
Starbucks supplied inbound chief government officer and Chair Brian Niccol a pay bump and substantial single honors to entice him from his earlier responsibility as president at Chipotle Mexican Grill.
Niccol formally takes the reins on the embattled espresso chain on Sept. 9. As chief government officer, he’ll be entrusted with reversing the agency’s plunging gross sales, enhancing customers’ expertise inside outlets and discovering out what to do with its having a tough time China firm. It is a big endeavor â $ ” for which he will definitely be nicely made up.
Starbucks revealed Niccol’s inbound pay technique in a declaring on Wednesday. Most of his fee plan consists of fairness that vests in time, and relies upon agency effectivity targets and varied different metrics. In his preliminary 12 months, if the agency strikes its targets, his pay plan is likely to be price as a lot $116.8 million.
Niccol will definitely be paid a base pay of $1.6 million yearly, with the prospect to make roughly $7.2 million much more in money cash. He’ll moreover be certified for yearly fairness honors price roughly $23 million.
And for leaving Chipotle, Niccol will definitely get a $10 million money cash bonus provide and $75 million in fairness to offset what he is waiving along with his separation from the burrito chain. The fairness will definitely vest over a three-year period, primarily based upon agency effectivity and Niccol’s interval.
” Brian Niccol has truly proven himself to be amongst some of the environment friendly leaders in our market, creating substantial financial returns over years,” Starbucks acknowledged in a declaration. “His fee at Starbucks is linked straight to the agency’s effectivity and the frequent success of all our stakeholders. We’re sure in his functionality to provide lasting, long-lasting price for our companions, customers and traders.”
At Chipotle, Niccol gathered a $1.3 million base pay in 2015, with a whole fee of $22.5 million. Provide honors and options represented the mass of his incomes, nonetheless he moreover took residence a cash bonus provide of $5.2 million.
All through his interval at Chipotle, the provision climbed up 773%, fattening the price of his normal fee.
Niccol’s pay plan is moreover far more charitable than that of his ousted precursor, Laxman Narasimhan. His base pay was $1.3 million, with possible money cash bonus gives of roughly $5.85 million and fairness honors of $13.6 million, in keeping with filings. In financial 2023, Narasimhan’s fee was valued at $14.6 million, primarily from provide honors.
Not like Narasimhan, that was previously primarily based within the U.Ok., Niccol is not going to be wanted to maneuver to Starbucks’ head workplace in Seattle.
â $” CNBC’s Kate Rogers added to this report
