The newly appointed CEO of Starbucks is being forced to wake up and smell the coffee, after it emerged that he will be permitted to work remotely when a hybrid model of three-days-a-week in the office is required for other staff.
Former Chipotle and Taco Bell chief Brian Niccol is due to start in his new role as Starbucks CEO on September 9th, replacing former incumbent Laxman Narasimhan.
But the company has stirred up bad feeling by publicizing the key terms of Niccol’s employment, which includes the provision for “a small remote office in Newport Beach, California” – over 1,000 miles away from Starbucks’ HQ in Seattle.
No Need to Blend
Stories about the new boss’ working arrangements began to percolate after a form that included Niccol’s management compensation and employment key terms was filed with the United States Securities and Exchange Commission.
Alongside details of his $10 million signing bonus, $1.6 million salary, bonus, stock options and other benefits, the document confirms that the CEO “will not be required to relocate to the Company’s headquarters.”
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Instead, Niccol will commute to Starbucks’ headquarters in Seattle as required to perform his duties and responsibilities. The document also states that he will be permitted to use a company aircraft for travel between his California home and the HQ.
“Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth… Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.” – Mellody Hobson, Starbucks board chair
Not Your Average Joe
In addition to the right to work remotely, the document goes on to provide that Starbucks will establish a “small remote office” in Newport Beach to be maintained at its expense for Niccol, together with “an assistant of your choosing for such office.”
It’s a bitter shot to swallow for staff further down the Starbucks Corp food chain, who are required to work at least three days per week in the office.
When that mandate was announced by interim CEO Howard Schultz in January 2023, he cited the desire to “rebuild our connection to each other and synchronize teams and efforts” as one of the primary reasons for the policy shift.
He also suggested that a business in which some employees are able to work from home while others aren’t is “inherently not fair.”
Sour Taste in the Mouth
Unsurprisingly, there have been signs of condemnation for the decision – flavored by the fact Niccol has a reputation for opposing unionization.
“Starbucks’ new CEO chose a Newport Beach office while the rest of the org is on return-to-office. A $250K jet allowance to commute back to Seattle doesn’t help the optics. Leadership is about setting the tone — this one might be off-key,” posted one user on X, formerly Twitter. “Seems like one rule for the BoDs and a different one for normal employees,” wrote another.
While others seem to think it’s all just a storm in a coffee cup:
People are surprised that Starbucks is building a remote/satellite office for their incoming CEO Literally. every. single. company. I’ve worked for has built at least one satellite office to keep or entice a key executive. Not even the CEO
— BuccoCapital Bloke (@buccocapital) August 15, 2024
