The Starbucks coffeehouse chain has great confidence in its new boss Brian Niccol and was prepared to dig deep into its pockets: the company’s commitment cost the company around $80 million. Niccol received stock options for this amount to compensate for the loss of a similar compensation package with his previous employer.
Niccol was appointed CEO of Starbucks on September 9. For the fiscal year ending September 29, the coffeehouse chain reported total compensation of $95.8 million (approximately 91.2 million euros). Of this, approximately $61,500 was attributable to base salary, as shown in the general meeting documents. He also received a bonus of five million dollars and a share package worth ten million dollars.
Niccol received stock options from Starbucks at this value because the move meant he lost the right to a similar package with his previous employer, the fast-food chain Chipotle.
Coffee house chain has problems
Starbucks is having problems: customers have been spending less in restaurants lately. Niccol announced that he wanted to focus the chain more on coffee instead of other products and wanted to make the stay in the branches more pleasant. One of the changes in the US is that you have to buy something again to be able to stay longer in a Starbucks.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
