Starbucks’ new CEO will work remotely from California; staff must office 3 days a week.

Brian Niccol is poised to take the helm as the new CEO of Starbucks, beginning next month. The seasoned executive is transitioning from his role at Chipotle to lead the iconic coffee chain, which is currently navigating challenges posed by activist investors and other pressures.

Niccol, who will be based in Newport Beach, California, can manage his responsibilities remotely. Reports indicate that he will travel to Seattle for essential meetings and will have a driver arranged by Starbucks during his time there.

His compensation package is noteworthy, potentially exceeding $113 million. This figure is especially significant as it surpasses his earnings from his last position at Chipotle, where he previously led the brand.

According to a recent SEC filing that outlined his employment terms, Niccol’s base salary will be $1.6 million annually. Additionally, he is eligible for an annual bonus that could range significantly, potentially equating to more than twice to four times his base salary, depending on how well the company performs.

As part of his compensation, Niccol will receive a $10 million signing bonus, in addition to annual stock awards estimated to be worth $23 million, beginning next year. To offset the transition from Chipotle, he will also be granted a substantial $75 million in equity, which will be disbursed over a three-year period.

When considering these multi-year stock grants, Niccol’s overall compensation could tall up to over $113 million. For context, he earned $22.5 million while at Chipotle last year, while his predecessor at Starbucks, Laxman Narasimhan, earned $14.6 million in the same timeframe.

Starbucks has publicly expressed confidence in Niccol’s capabilities. The company stated, “Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years.” They emphasized that his compensation is closely linked to Starbucks’ performance as well as the success shared among all stakeholders.

In addition to his impressive pay package, Starbucks will also reimburse Niccol for any relocation costs if he opts to move to Seattle. The company has agreed to cover up to three months of temporary housing costs if necessary, in addition to providing him with a driver during his business travels in Seattle.

Interestingly, Starbucks has historically not encouraged remote working. In a previous directive, then-CEO Howard Schultz mandated that employees work from the office at least three days a week, a move that aligns with broader discussions about remote work policies within various sectors.

The topic of remote work has garnered mixed responses, particularly from leaders in the tech industry. Former Google CEO Eric Schmidt faced backlash for criticizing remote work models, suggesting they impacted the company’s competitiveness and productivity, particularly in the rapidly advancing field of artificial intelligence. However, he later retracted those statements.

Brian Niccol’s tenure at Starbucks officially commences on September 9, as noted in the SEC filing. Following the announcement, there has been anticipation regarding how his leadership will shape the company’s future, especially amidst evolving market dynamics and stakeholder expectations.

Starbucks has yet to respond to requests for comments from various media outlets as of the latest updates.