In a leadership shift at one of the world’s most recognizable coffee brands, Starbucks has announced the appointment of Brian Niccol as its new chairman and chief executive officer, effective Sep. 9, 2024. Niccol, currently serving as the Chairman and CEO of Chipotle, is set to bring his experience in driving innovation and growth to the Seattle-based company.
But Niccol’s appointment comes at a huge cost, according to published reports. To lure him from Chipotle, Starbucks is brewing up a $10 million (all figures U.S.) cash bonus and $75 million in equity — that’s to make him whole for what he is missing out at the fast-food chain. On top of that, he’s receiving an annual base salary of $1.6 million, an opportunity to earn $7.2 million more, and annual equity awards worth up to $23 million, according to CNBC.
Starbucks CFO Rachel Ruggeri will take on the role of interim CEO until Niccol assumes his new position. The company also revealed that Mellody Hobson, the current board chair, will transition to the role of lead independent director.
Niccol’s tenure at Chipotle has been marked by significant transformation and growth. Under his leadership since 2018, the fast-casual restaurant chain nearly doubled its revenue and saw profits surge nearly sevenfold. Additionally, Chipotle’s stock price experienced an 800% increase. Niccol’s focus on culture, operational excellence, and digital transformation has been credited with much of the company’s success.
“We are thrilled to welcome Brian to Starbucks,” said Hobson in a statement. “His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth.”
Niccol expressed enthusiasm about joining Starbucks, highlighting the company’s iconic brand and unique culture. “I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners,” he said.
This leadership transition comes as Laxman Narasimhan steps down from his role as CEO and as a member of the Starbucks board, effective immediately. Narasimhan’s tenure at Starbucks included improvements in the partner experience, significant innovation in the supply chain, and enhanced store operations.
Hobson acknowledged Narasimhan’s contributions, stating, “On behalf of the board, I want to sincerely thank Laxman for his contributions to Starbucks, and his dedication to our people and brand.”
Niccol’s background includes leadership roles at Taco Bell and Pizza Hut, both divisions of Yum! Brands, and he began his career in brand management at Procter & Gamble. He holds an undergraduate degree from Miami University and an MBA from the University of Chicago Booth School of Business.
Howard Schultz, Starbucks founder and chairman emeritus, also voiced his support for Niccol’s appointment. “His retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values-driven enterprise,” Schultz said. “He has my respect and full support.”
Ruggeri, who has been with Starbucks for 23 years and has served as CFO since 2021, will lead the company in the interim.
