The future Starbucks boss Brian Niccol is under criticism because the company offered him the opportunity to commute around 1,600 kilometers on a private jet.
Social media users immediately criticized the world’s largest coffeehouse chain for the move, even though the company has made sustainability efforts in other areas, such as banning plastic straws.
Mr. Niccol’s job offer states that he will not be required to move from his family home in Newport Beach, California, to the company’s headquarters in Seattle, Washington, when he begins his employment on September 9.
The document states: “You agree to commute from your home to the company headquarters (and to undertake other business trips) as necessary to perform your duties and responsibilities.”
Starbucks has also offered the new boss a “small satellite office in Newport Beach” that will be “maintained at company expense.”
The offer letter goes on to say that the 50-year-old will be allowed to use the company aircraft for “business travel”, “travel between home and company headquarters” and “private travel” in line with company policies up to $250,000 (£191,500) per year.
A company spokesperson told CNBC earlier this week that Mr. Niccol is expected to work at the Seattle office at least three days a week, in line with the company’s hybrid work policy.
Critics on the Internet accused the company of hypocrisy. Some called for a boycott of the chain, others said they would no longer shop at the chain.
One wrote on X, formerly Twitter: “How can anyone justify a 1,000-mile commute on a private jet? #Starbucks’ sustainability policy looks like greenwashing in comparison.”
Another said: “Seriously? New CEO Brian Niccol has to commute 1,000 miles by private jet? At a time when the wealthiest are proven to be the main contributors to environmental damage? I imagine you’ve lost some customers because of this – certainly me.”
A third posted: “The new CEO of Starbucks commutes 1,000 miles to Seattle on a private jet to get to work, so don’t be too hard on the waitress who gave you a plastic straw when you didn’t want one.”
Other online critics focused on the level of compensation Mr Niccol will receive in his new job, saying he could earn well over $100 million (£76.6 million) in his first year.
Starbucks has said Mr Niccol will receive a $10 million (£7.6 million) cash bonus upon signing, as well as $75 million (£57.5 million) in equity to offset losses from his abrupt departure as Chipotle’s chief executive.
His annual base salary is $1.6 million (£1.2 million) with the possibility of an estimated bonus of up to $8.8 million (£6.7 million) and Starbucks shares worth up to $23 million (£17.6 million) per year from 2025.
Former US Secretary of Labor Robert Reich posted on X: “How come we never talk about CEO salaries when we talk about rising prices?”
Another X user wrote: “Starbucks wants its customers to pay hyper prices just to use paper straws and thus save the environment, while the CEO flies 1,000 miles on a private jet three times a week.”
Starbucks announced earlier this month that it would replace Chief Executive Officer Laxman Narasimhan with Mr Niccol; the move sent the company’s share price up more than 20 percent.
The company hopes that Mr. Niccol – one of the most sought-after business leaders because of his track record of turning around companies that have fallen on hard times – can revive sagging sales and re-establish Starbucks as a destination where customers are willing to pay higher prices.
Compared to Chipotle, however, Niccol faces far greater and more difficult challenges at Starbucks. The company operates 38,000 stores worldwide and must find a way to lure inflation-weary customers back into the stores to buy the expensive drinks.
Nancy Tengler, managing director of Laffer Tengler Investments, which owns shares in both Starbucks and Chipotle, said: “I’ll pay $9 (£6.90) for a burrito, but I’m not sure I’d pay $9 for a cup of shaken venti espresso.”
A Starbucks spokesperson said: “Brian Niccol has proven himself to be one of the most successful leaders in our industry, generating significant financial returns over many years. His compensation at Starbucks is directly tied to the performance of the company and the collective success of all our stakeholders.
“We are confident in his ability to deliver long-term, enduring value to our partners, customers and shareholders. Brian’s primary office and much of his time will be spent in our Seattle support center or visiting partners and customers at our stores, roasteries, roasting facilities and offices around the world. Brian’s schedule will meet or exceed hybrid work guidelines and the workplace expectations we have for all partners. He will also maintain a Seattle residency.”
