Starbucks Corp. Granted new Chief Executive Officer Brian Niccol about $96 million after four months of work last year, one of the biggest compensation packages in corporate America.
About 94% of Niccol’s pay came from stock awards, according to a filing. Most of them are tied to performance and the rest are time-based, vesting over a three-year period. Niccol, who joined Starbucks in early September, also got a $5 million sign-on bonus after his one-month anniversary with the company.
Starbucks ousted its prior CEO last year after a string of sales declines. Niccol was recruited from Chipotle Mexican Grill Inc. To turn the business around. The coffee chain didn’t require Niccol to move to the Seattle, where Starbucks is based, and agreed to cover temporary housing costs in the area as well as use of the company jet.
Friday’s filing shows Starbucks paid more than $143,000 in housing expenses, about half of which were tax-related payments. Niccol also spent about $72,000 flying between his home in southern California and Seattle, and about $19,000 related to other personal use of company aircraft.
Bloomberg estimated Niccol’s annual pay package to be valued at about $113 million at the time of his hiring, with a large part tied to equity to replace awards from his prior employer that he had to relinquish. He ranks near the top 20 highest-paid CEOs, according to the Bloomberg Pay Index.
In the filing, Starbucks said Niccol was a “highly sought-after, effective leader with a proven track record” with the experience to drive the chain’s growth.