Starbucks’ incoming chief executive, Brian Niccol, is under fire over the company’s offer for him to commute around 1,000 miles (1,600km) by private jet.
Social media users were quick to criticise the world’s biggest coffee shop chain over the move in light of its sustainability efforts elsewhere, such as banning plastic straws.
Mr Niccol’s job offer said he will not have to relocate to the company’s headquarters in Seattle, Washington, from his family home in Newport Beach, California, when he takes up his new role on September 9.
The document states: “You agree to commute from your residence to the company’s headquarters (and engage in other business travel) as is required to perform your duties and responsibilities.”
Starbucks has also offered the incoming boss a “small remote office in Newport Beach” which will be “maintained at the expense of the company”.
The offer letter adds that the 50-year-old will be eligible to use the corporate aircraft for “business related travel”, for “travel between city of residence and the company’s headquarters”, and for “your personal travel” in accordance with company policies, up to 250,000 US dollars (£191,500) per year.
A company spokesman told CNBC earlier this week that Mr Niccol will be expected to work from the Seattle office at least three days a week in line with its hybrid work policies.
Critics online accused the firm of hypocrisy, with some calling for a boycott of the chain while others said they will no longer shop at the chain.
One wrote on X, formerly Twitter: “How can anyone justify a 1,000-mile #commute by private jet? Makes #Starbucks sustainably policy look like greenwashing.”
Another said: “Seriously? New CEO Brian Niccol to take 1,000-mile private jet commute? In an age where the richest are proven primary contributors to damage to the environment? I imagine you have lost a few customers through this – you’ve certainly lost me.”
A third posted: “The new Starbucks CEO is ‘supercommuting’ 1,000 miles to Seattle on a private jet to work, so don’t be too harsh on that waitress who gave you a plastic straw when you didn’t want one.”
Other online critics focused on how much Mr Niccol is set to get paid in his new job, where he could make well in excess of 100 million dollars (£76.6 million) in his first year.
Starbucks has said Mr Niccol will receive a cash signing bonus of 10 million dollars (£7.6 million) as well as 75 million dollars (£57.5 million) in equity to make up for what is being forfeited by his abrupt departure as chief executive at Chipotle.
Meanwhile, his annual base salary will be 1.6 million dollars (£1.2 million) with the potential for an estimated bonus of up to 8.8 million dollars (£6.7 million) and Starbucks shares of up to 23 million dollars (£17.6 million) a year from 2025.
Former US labour secretary Robert Reich posted on X: “How come we never talk about CEO pay when we talk about rising prices?”
Another X user wrote: “Starbucks would like its customers to pay hyper prices only to use paper straws to save the environment while the CEO flies 1600km x 3 days a week on a private jet.”
Starbucks announced earlier this month that it was replacing chief executive Laxman Narasimhan with Mr Niccol, a move which saw the company’s shares jump more than 20%.
The firm hopes Mr Niccol – who is among the most highly sought-after corporate executives due to his track record of turning around firms that have hit a rough patch – can revive fading sales and re-establish Starbucks as a destination where customers are willing to pay premium prices.
However, compared with Chipotle, Mr Niccol faces far larger and deeper challenges at Starbucks, which has 38,000 stores worldwide, and has to work out how to get inflation-weary customers back into stores for its pricey drinks.
Nancy Tengler, chief executive of Laffer Tengler Investments, which owns shares in both Starbucks and Chipotle, said: “I will pay nine dollars (£6.90) for a burrito, I’m not sure I’m going to pay nine dollars for a cup of Venti shaken espresso.”
A Starbucks spokesperson said: “Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years. His compensation at Starbucks is tied directly to the company’s performance and the shared success of all our stakeholders.
“We’re confident in his ability to deliver long-term, enduring value for our partners, customers and shareholders. Brian’s primary office and a majority of his time will be spent in our Seattle Support Center or out visiting partners and customers in our stores, roasteries, roasting facilities and offices around the world. Brian’s schedule will meet or exceed the hybrid work guidelines and workplace expectations we have for all partners. He will also have a residence in Seattle.”
