Starbucks said on Wednesday incoming CEO Brian Niccol was eligible for annual equity awards worth $23 million (€20.9 million) and would receive additional stock grants of $75 million (€68 million) for giving up his shares in Chipotle Mexican Grill.
Niccol's initial annual base salary will be $1.6 million (€1.46 million), Starbucks said in a filing. He will also receive a cash signing bonus of $10 million (€9.1 million).
Background
Niccol, who has been Chipotle's CEO since March 2018, was instrumental in fixing the restaurant chain's reputation after a series of food safety issues. He has also focused on improving the burrito chain's digital and mobile ordering platforms to boost efficiency.
Starbucks is banking on that experience as he becomes the company's sixth CEO, replacing Laxman Narasimhan, who stepped down on Aug. 13 after taking over the top job in March 2023.
Growing Competition
Narasimhan's tenure was marred by increasing pressure from activist investor Elliott Investment Management to turn the company around as it grappled with growing competition from nimbler rivals and weak demand in the US and China.
Starbucks shares had shed nearly 25% of their value during Narasimhan's tenure as the top boss.
Compensation
Narasimhan's total compensation was worth $14.6 million (€13.3 million) last year, compared with $8.8 million (€8 million) in 2022, according to a regulatory filing in January.
Niccol's compensation at Chipotle was $22.5 million (€20.5 million) for 2023, compared with $17.2 million (€15.6 million) in 2022, a filing showed in April.
Under Niccol's stewardship, Chipotle doubled its sales over the last five years, while its stock more than tripled.
