Starbucks welcomes Brian Niccol with a lush package

Starbucks (NASDAQ:SBUX) disclosed among the phrases of its compensation association with incoming CEO Brian Niccol in an SEC submitting late on Wednesday.

Throughout Niccol’s employment with the corporate, he’ll obtain an preliminary base wage of $1,600,000 per 12 months, and an annual money incentive alternative at a goal of 225% of base wage and a most of 450% of base wage, which can be prorated for fiscal 12 months 2024. Starting in Starbucks’ (SBUX) fiscal 12 months 2025, Niccol can be eligible to obtain annual fairness awards with a goal worth of $23,000,000, pursuant to the phrases of the shareholder authorized fairness plans. In his first 12 months of employment, if the corporate hits its targets, Niccol’s pay package deal may very well be value as a lot $116.8 million.

Niccol will obtain a money signing bonus of $10,000,000, in consideration for money incentive alternatives which are being forfeited from his present employer and fairness that will have invested at Chipotle (CMG).

Niccol is not going to be required to relocate to Starbucks’ (SBUX) headquarters in Seattle, however has agreed to commute from his residence to the corporate’s headquarters as is required to carry out his duties and duties. Starbucks (SBUX) is establishing a small distant workplace in Newport Seashore to help Niccol.

Even after the high-profile hiring of Brian Niccol, Starbucks (SBUX) might nonetheless really feel the presence of ex-CEO (thrice) Howard Schultz. Notably, Schultz remains to be the corporate’s largest particular person shareholder and sits within the place as chairman emeritus for all times. He’s additionally allowed to attend and observe board conferences, based on the Monetary Occasions. Experiences indicated that Schultz met with Niccol earlier than he was employed, however activist buyers Elliott Funding Administration and Starboard Worth weren’t notified forward of the announcement.

Starbucks (SBUX) fell 2.09% on Wednesday, however are nonetheless up greater than 20% for the week.