Starbucks' incoming CEO could make well in excess of $100 million in his first year with the company under an incentive-laden contract, and he will not be required to relocate from his home in California to Seattle, the home of the global coffee giant.
Starbucks announced on Tuesday that Brian Niccol would become its chairman and CEO, taking over from Laxman Narasimhan, who stepped down abruptly after spending a little more than a year as the company's top executive. Niccol will become Starbucks’ chairman and CEO on Sept. 9.
Niccol is among the mostly highly sought after corporate executives after establishing a track record of success in turning around companies that have hit a rough patch, including Taco Bell and, most recently, Chipotle.
Niccol took the top job at the California chain in 2018 when Chipotle was being roiled by a series of foodborne illness outbreaks that had sickened more than 1,000 of its customers over several years.
Revenue at Chipotle has nearly doubled since his arrival after he energized product innovation and at the same time, instituted employee benefits like a program that pays employees’ college tuition costs at certain schools.
Starbucks is counting on Niccol to revive fading sales and re-establish the company as a destination where customers are willing to pay premium prices for its products.
In a filing with the Securities and Exchange Commission late Wednesday, Starbucks said that the 50-year-old Niccol will receive a cash bonus of $10 million as well as $75 million in equity to make up for what is being forfeited by his abrupt departure from Chipotle. The equity component of his pay package will vest over time and is contingent on meeting performance targets.
If Starbucks meets those targets and other goals, his pay could easily surpass $100 million in his first year.
Niccol's annual base salary will be $1.6 million. He'll also have an annual cash incentive opportunity at a target of 225% of his base salary and a maximum of 450% of base salary. If he achieves the maximum incentive, it would be about $8.8 million.
Starting in fiscal 2025, Niccol will be eligible to receive annual equity awards worth up to $23 million.
Perhaps just as notable, Starbucks is not requiring that Niccol relocate to Starbucks headquarters in Seattle, saying he can remain in Newport Beach, California, where he currently lives and where Chipotle is based.
According to a regulatory filing, Starbucks will help create, with assistance from Niccol, a small remote office in Newport Beach and the company will hire an assistant for Niccol at that location.
Niccol will commute to Seattle as needed, as well as embark on any other business travel that's deemed necessary.
Starbucks Chief Financial Officer Rachel Ruggeri is serving as the interim CEO until Niccol arrives in early September.
Shares of Starbucks were little changed Thursday. They surged 20% when Niccol's appointment was announced earlier this week.
FILE - A Starbucks mermaid logo sign is displayed on a store, May 29, 2024, in Salem, N.H. (AP Photo/Charles Krupa, File)
FILE - Brian Niccol, named the chairman and chief executive officer of Starbucks on Aug. 13, 2024, is shown during an interview on June 9, 2015, in New York. (AP Photo/Mark Lennihan, File)
CLEVELAND (AP) — Lane Thomas and José Ramírez hit back-to-back eighth-inning homers and Joey Cantillo pitched five scoreless innings as the AL Central-leading Cleveland Guardians beat the Tampa Bay Rays 6-1 on Saturday night.
The Guardians remained three games ahead of second-place Kansas City in the division with 13 games remaining. Cleveland has the best home record in the AL at 44-27 and is 85-64 overall, second in the league to the New York Yankees.
Josh Naylor’s two-run single through a drawn-in infield ignited a three-run sixth that extended Cleveland’s lead to 4-0. David Fry added a sacrifice fly off Tyler Alexander (6-5), scoring Ramírez, who had been intentionally walked for a franchise-record 88th time.
Thomas and Ramírez tacked on solo homers in the eighth against Hunter Bigge.
Cantillo (2-3) gave up three hits, walked one and struck out six in his sixth start in the majors. The left-hander threw 6 2/3 perfect innings — and worked a career-high seven — in earning his first win Monday at the White Sox.
Junior Caminero had a career-high three doubles for Tampa Bay, driving in the team's only run in the eighth. The Rays fell to 4-5 on a 10-game trip through Baltimore, Philadelphia and Cleveland and are six back for the third AL wild card.
Cleveland went ahead 1-0 in the sixth on Brayan Rocchio’s double to right, scoring Andrés Giménez. Jhonkensy Noel also attempted to come home, but was thrown out on a relay from second baseman José Caballero.
Tampa Bay appeared to score in the fifth on Jose Siri’s single, but a replay review overturned the safe call at home on Josh Lowe. Thomas’ throw and Austin Hedges’ tag just beat Lowe’s left hand to the plate.
TRAINER’S ROOM
Rays: 2B Christopher Morel (right Achilles discomfort) was held out of the lineup one day after being removed in the third inning in Cleveland. Manager Kevin Cash said Morel “feels better now than he did when he came out of the game.”
Guardians: OF Steven Kwan (mid-low back tightness), who was a late scratch Friday, is considered day to day and will not be placed on the injured list. The All-Star left fielder underwent medical tests that revealed no structural damage.
UP NEXT
Rays RHP Taj Bradley (6-10, 4.40 ERA) takes on Guardians RHP Ben Lively (11-9, 4.01 ERA) in the four-game series finale. Lively was struck on his right leg by Dominic Fletcher's liner in his last start Tuesday at the White Sox, exiting after 1 2/3 innings.
AP MLB: https://apnews.com/hub/mlb
Tampa Bay Rays' Drew Rasmussen pitches in the first inning of a baseball game against the Cleveland Guardians, Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Tampa Bay Rays' Josh Lowe, left, is tagged out by Cleveland Guardians catcher Austin Hedges, right, in the fifth inning of a baseball game Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Tampa Bay Rays' Josh Lowe (15) steals second base under a tag by Cleveland Guardians second baseman Andres Gimenez, front left, in the fifth inning of a baseball game Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Tampa Bay Rays' Jose Caballero tosses his bat after striking out in the fourth inning of a baseball game against the Cleveland Guardians, Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Cleveland Guardians' Jhonkensy Noel, left, is tagged out at home plate by Tampa Bay Rays catcher Logan Driscoll, right, in the fifth inning of a baseball game, Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Tampa Bay Rays' Tyler Alexander pitches in the fifth inning of a baseball game against the Cleveland Guardians Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Cleveland Guardians' Joey Cantillo pitches in the first inning of a baseball game against the Tampa Bay Rays, Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Tampa Bay Rays' Junior Caminero, left, gestures from second base after hitting a double in the fourth inning of a baseball game against the Cleveland Guardians, Saturday, Sept. 14, 2024, in Cleveland. Guardians second baseman Andres Gimenez, right, looks on. (AP Photo/Sue Ogrocki)
Cleveland Guardians' Jose Ramirez, left, scores behind Tampa Bay Rays catcher Logan Driscoll, right, in the sixth inning of a baseball game Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Cleveland Guardians' Lane Thomas, left, gestures from second base in front of Tampa Bay Rays second baseman Jose Caballero (7) after hitting a double in the sixth inning of a baseball game Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
Cleveland Guardians' Josh Naylor, right, hits a single in front of Tampa Bay Rays catcher Logan Driscoll, left, in the sixth inning of a baseball game Saturday, Sept. 14, 2024, in Cleveland. (AP Photo/Sue Ogrocki)
