Brian Nicol, Chipotle CEO
Anjali Sundaram | CNBC
Starbucks Offering incoming CEO and Chairman Brian Niccol a salary increase and a large one-time bonus to entice him to resign from his previous role as CEO Chipotle Mexican BBQ.
Nicole officially took over the troubled coffee chain on September 9. China business. It’s a tough job – and he’ll be paid handsomely for it.
Starbucks disclosed Nicol’s compensation plan in a filing Wednesday. His compensation package consists largely of equity that vests over time and is based on company performance goals and other metrics. In his first year, his salary could be as high as $116.8 million if the company meets its goals.
Nicol will receive an annual base salary of $1.6 million with the opportunity to earn up to $7.2 million in cash. He is also eligible to receive annual equity awards worth up to $23 million.
As a result of leaving Chipotle, Niccol will receive a $10 million cash bonus and $75 million in equity to make up for what he lost from leaving the burrito chain. The equity will vest over three years based on company performance and Nicole’s tenure.
“Brian Nicol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over the years,” Starbucks said in a statement. “His compensation at Starbucks is consistent with company performance and The shared success of all stakeholders is directly linked. We are confident in his ability to deliver long-term, enduring value to our partners, customers and shareholders.”
At Chipotle, Niccol earned a base salary of $1.3 million last year and total compensation of $22.5 million. Stock awards and options accounted for the bulk of his earnings, but he also received a $5.2 million cash bonus.
During his time at Chipotle, the company’s stock price rose 773%, increasing the value of his overall salary.
Nicol’s salary package is also more generous than that of his ousted predecessor Laxman Narasimhan. His base salary is $1.3 million, with potential cash bonuses of up to $5.85 million and equity awards of $13.6 million, documents show. In fiscal 2023, Narasimhan’s compensation was $14.6 million, primarily from stock awards.
Unlike Narasimhan, who was previously based in the U.K., Niccol won’t need to move to Starbucks’ headquarters in Seattle.
—CNBC’s Kate Rogers contributed to this report
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