Brian Niccol will be taking over as the new CEO of Starbucks, based in Seattle. However, the company announced that a new remote office will be established in Newport Beach, California, where Niccol is currently located. This allows Niccol to commute to Seattle as necessary for his duties without having to relocate. Starbucks has recently implemented a return-to-office policy that requires corporate employees to be in the office at least three days a week starting in January 2023.
In a memo, former CEO Howard Schultz emphasized the importance of human connection and the need to rebuild relationships as the company emerges from the pandemic. Unlike store employees, corporate workers were given the privilege of working virtually during the pandemic, but data showed that many were not meeting the minimum requirement even after adopting a hybrid model. This may have influenced Starbucks’ decision to hire Niccol, as he was able to continue enjoying the sunny Southern California weather while working remotely for Chipotle.
Niccol’s move to Starbucks comes after his successful tenure at Chipotle, where he helped grow sales and increase the stock price. Starbucks is offering Niccol a generous compensation package, including a cash signing bonus of $10 million and stock equity worth $75 million, along with other incentives such as an annual cash incentive opportunity and equity awards. Niccol, who previously led Taco Bell, will start his new role at Starbucks on September 9, becoming the fourth CEO in the past two years.
Niccol’s appointment comes amid declining sales and increasing activist investor campaigns at Starbucks. The company’s stock saw a significant increase following the announcement of Niccol’s new role. Despite the challenges facing Starbucks, the company is hopeful that Niccol’s leadership and experience in the food industry will help drive growth and innovation. With his background in successfully leading other major fast food chains, Niccol is expected to bring fresh ideas and strategies to Starbucks, positioning the company for future success under his direction.
Starbucks’ decision to allow Niccol to work remotely from California while still fulfilling his duties as the CEO reflects a changing landscape in work culture and the importance of flexibility for executives. As more companies adopt remote work policies and consider the preferences of top talent, Starbucks is demonstrating its willingness to accommodate the needs of its senior leadership. This shift may reflect broader trends in the tech and corporate sectors, where remote work and flexible schedules are becoming more common, allowing executives like Niccol to lead from different locations without compromising their effectiveness.
