Brian Niccol is set to get a big payout by becoming Starbucks’ next CEO — and he’ll earn many times what most of the people at the company’s coffee shops do.
Niccol could earn as much as $113 million in Starbucks’ top role, according to a filing that the company made with the SEC on Wednesday.
Niccol’s annual base pay will be $1.6 million, according to the filing. He’ll also be able to earn a bonus of up to $7.2 million a year as well as a $10 million sign-on bonus in his first six months with Starbucks.
But, as with most CEO pay deals, the majority of Niccol’s earnings will come in the form of stock in the company. Around the time of his September 9 start date, Niccol will earn a stock grant worth between $75 million and $80 million. He will also be eligible for an annual $23 million stock grant, with the first installment due during Starbucks’ next fiscal year.
The stock awards will fully vest over the course of four years, according to the filing.
Starbucks did not immediately respond to a request for comment.
“The average salary for a Starbucks-Barista is $49,287 per year in United States,” according to a Glassdoor FAQ. “Salaries estimates are based on 1650 salaries submitted anonymously to Glassdoor by a Starbucks-Barista employees in United States.
The salaries were submitted as of June and include pay beyond salary, such as bonuses.
Starbucks workers at hundreds of stores have been trying to win contracts, including better pay, in recent years. The company and representatives of Workers United, which is organizing baristas at the stores, restarted bargaining again earlier this year, though no contracts have been agreed to yet.
Starbucks told Fortune that Niccol’s compensation “is tied directly to the company’s performance and the shared success of all our stakeholders.”
Niccol’s pay package is also significantly higher than the one Starbucks gave to outgoing CEO Laxman Narasimhan. Last year, Narasimhan’s compensation was worth just under $15 million, according to another SEC filing.
Still, Narasimhan is set to receive a severance payout of close to $11 million under Starbucks’ policies, according to a compensation document that the company has filed with the SEC.
Do you work at Starbucks and have a story idea to share? Reach out to this reporter at abitter@businessinsider.com
Source link
lol
