Starbucks’ new boss under fire for 1,000-mile commute
Brian Niccol, the newly appointed CEO of Starbucks, is facing criticism after it was revealed that he will commute nearly 1,000 miles (1,600 km) from his home in Newport Beach, California, to the company’s Seattle headquarters using a corporate jet.
Critics have pointed out a perceived contradiction between Starbucks’ public environmental commitments and the lifestyle of its top executives, raising questions about whether the company’s three-day in-office work policy will apply to Niccol.
Niccol is set to take on the role as head of the world’s largest coffee chain on September 9.
Starbucks has not responded to the BBC’s request for comment.
Niccol’s job offer specified that he would not be required to relocate to the company’s headquarters but would be expected to commute from his residence as needed for his role.
The agreement states that Niccol will be eligible to use the company’s aircraft for “business-related travel” as well as trips between his home and the headquarters.
Starbucks also plans to establish a small remote office for Niccol in Newport Beach for when he works from California.
Starbucks currently has a hybrid work policy that requires employees to be in the office at least three days per week.
The company has not clarified whether these rules will apply to Niccol or if working from the remote office in California would meet the requirements.
Dan Coatsworth, an investment analyst at AJ Bell, told the BBC that Niccol “on paper” appears to be receiving the “same hybrid working terms as other office-based employees, as one might expect.”
“However, what leaves a sour taste is the idea he can use a private jet to nip 1,000 miles between California and Seattle,” he added.
Mr. Coatsworth said while using a private jet was not only bad for the environment and would send a bad message to customers and staff, it was also “ultimately not a practical way to run a $105bn business with an estimated 400,000 employees”.
“A leader needs to be at the heart of a business, not sitting on the beach enjoying the perks of the job,” he said.
“The fact Brian Niccol was drafted in to give a new lease of life to Starbucks implies he has a big challenge ahead. This isn’t taking the reins of a business firing on all cylinders; it’s a repair job which means being in the engine room at all times.”
The topic of where people work from has been debated in recent years, with companies in many industries wrestling with whether to allow the remote work practices that exploded during the coronavirus pandemic to continue.
The terms of his employment also sparked a backlash on social media.
“That’s nice… good convenience for top talent! But hope we don’t see too many new ‘sustainability’ and ‘environment’ related ads from @starbucks. *Wink*,” said one X user.
“The new Starbucks CEO is ‘supercommuting’ 1,000 miles to Seattle on a private jet to work, so don’t be too harsh on that waitress who gave you a plastic straw when you didn’t want one,” said another.
Some sectors, such as banking, signaled early on that they would expect staff to return to the office full-time, while others, often in the tech industry, have said they will allow remote work indefinitely. Many places have opted for a mix.
Others focused on how much Mr Niccol is set to get paid in his new job.
“How come we never talk about CEO pay when we talk about rising prices?” former US Secretary of Labor Robert Reich posted.
According to the terms of his offer, Mr Niccol’s annual base pay will be $1.6m (£1.2m). On top of that, he could get a performance-related bonus of as much as $7.2m and up to $23m a year of Starbucks shares.
A report published by the United Nations in 2021 showed that the world’s wealthiest 1% of people produced double the combined carbon emissions of the poorest 50%.
Starbucks announced this month that Mr Niccol would be replacing Laxman Narasimhan as its chief executive.
The announcement came as the coffee chain looks to boost flagging sales.
Mr Niccol has led the Mexican fast-food chain Chipotle since 2018, helping it to recover from a crisis after outbreaks of food poisoning.
During his time in the role, the firm’s sales doubled and its shares surged from less than $7 each to more than $50.
Chipotle also opened almost 1,000 new stores and new technologies were introduced to automate food preparation.
In recent months, it has been seen as a bright spot in the restaurant industry, where many businesses have reported that customers are cutting spending.
