By T. Jayani, JadeTimes News
The newly appointed CEO of Starbucks, Brian Niccol, is facing criticism after it was disclosed that he will be commuting nearly 1,000 miles (1,600 km) from his home in Newport Beach, California, to the company’s Seattle headquarters using a corporate jet. Social media users have highlighted a perceived inconsistency between Starbucks' public commitment to environmental issues and the personal practices of its senior executives.
Mr. Niccol is scheduled to assume his role as the leader of the world's largest coffee chain on September 9. Starbucks did not immediately respond to a request for comment from us regarding the situation.
According to his job offer, Mr. Niccol is not required to relocate to the company's headquarters and will commute from his home as needed to fulfill his duties. The agreement also mentions that he is entitled to use the company’s aircraft for business travel, including flights between his residence and the Seattle office. Additionally, Starbucks will establish a small remote office in Newport Beach for him to use when working from California.
These employment terms have sparked a backlash on social media. Critics have pointed out the convenience afforded to top executives, contrasting it with the company's environmental messaging. One user on X (formerly Twitter) sarcastically remarked on the likelihood of seeing new sustainability themed ads from Starbucks, while another noted the irony of the CEO’s long distance commute on a private jet compared to minor environmental infractions by others, like using plastic straws.
Others have focused on Mr. Niccol’s substantial compensation package. Former U.S. Secretary of Labor Robert Reich questioned why CEO pay is rarely discussed in conversations about rising consumer prices. Mr. Niccol’s offer includes an annual base salary of $1.6 million (£1.2 million), a potential performance bonus of up to $7.2 million, and up to $23 million in Starbucks stock each year.
A 2021 United Nations report highlighted that the wealthiest 1% of the global population produces twice the combined carbon emissions of the poorest 50%. Starbucks recently announced Mr. Niccol as the successor to Laxman Narasimhan as CEO, as the company seeks to boost sluggish sales.
Before joining Starbucks, Mr. Niccol was the CEO of the Mexican fast food chain Chipotle, where he successfully led the company through a recovery following food poisoning outbreaks. Under his leadership, Chipotle’s sales doubled, and its stock price soared from under $7 to over $50. The company also expanded by opening nearly 1,000 new locations and implemented new technologies to automate food preparation. In recent months, Chipotle has been a standout performer in the restaurant industry, even as many other businesses report reduced consumer spending.
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