Starbucks New CEO Brian Niccol under fire for 1,000-mile commute

Starbucks’ recently appointed CEO, Brian Niccol, has come under fire after it was disclosed that he will fly nearly 1,000 miles (1,600 kilometres) from his family home in Newport Beach, California, to the company’s headquarters in Seattle on a corporate aircraft.

Critics have pointed out a mismatch between the company’s stated stance on environmental issues and the lifestyles of its top executives, as well as worries about whether Starbucks’ three-day office working limit will apply to him.

Mr Niccol is set to take over the world’s largest coffee shop chain on September 9.

Starbucks did not replied to the BBC’s requests for comment.

Mr. Niccol’s job offer said that he would not be obliged to relocate to the company’s headquarters. However, he agreed to commute from his apartment to the headquarters as needed to execute his duties and obligations.

According to the paper, he will be able to use the company’s aircraft for “business related travel” as well as “travel between [his] city of residence and the company’s headquarters”.

Starbucks has also stated that it will set up a modest remote office in Newport Beach for Mr Niccol to utilise while working from California.

Starbucks offers a mixed work arrangement that requires employees to be in the office at least three days per week.

The corporation has not verified whether the same criteria will apply to Mr Niccol, or whether his work from the new distant location in California will meet those requirements.

According to Dan Coatsworth, an investment analyst at AJ Bell, Mr Niccol “on paper” has the “same hybrid working terms as other office-based employees, as one might expect.”

“However, what leaves a sour taste is the idea he can use a private jet to nip 1,000 miles between California and Seattle,” according to him.

Mr Coatsworth stated that operating a private jet was not only terrible for the environment and would convey the wrong image to consumers and staff, but it was also “ultimately not a practical way to run a $105 billion business with an estimated 400,000 employees.”

“A leader needs to be at the heart of a business, not sitting on the beach enjoying the perks of the job,” he told reporters.

“Brian Niccol was draughted in to give Starbucks a fresh lease on life, implying he faces a significant challenge. This isn’t taking over a thriving firm; it’s a repair job that requires constant presence in the engine room.

The question of where people work has come up in recent years, with organisations in a variety of industries debating whether to continue the remote work practices that exploded during the coronavirus pandemic.

According to Andrew Speke, a spokesperson for the High Pay Centre, a research tank that studies executive pay, it is critical for corporate leaders to ensure that “employees can see that it’s not one rule for them and one rule for their bosses”.

The question of where people work has come up in recent years, with organisations in a variety of industries debating whether to continue the remote work practices that exploded during the coronavirus pandemic.

According to Andrew Speke, a spokesperson for the High Pay Centre, a research tank that studies executive pay, it is critical for corporate leaders to ensure that “employees can see that it’s not one rule for them and one rule for their bosses”.

The circumstances of his job also drew criticism on social media.

“That’s nice… great convenience for high talent! But I hope we don’t see too many new’sustainability’ and ‘environment’ advertising from @starbucks. One X user commented, “*Wink*.”

“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,” according to another.

Some industries, such as banking, indicated early on that they expected employees to return to the office full-time, while others, particularly in the technology industry, have stated that they will accept remote work indefinitely. Many places have chosen a combination.

Others focused on how much Mr Niccol is expected to earn in his new job.

Former US Secretary of Labour Robert Reich questioned why CEO remuneration is rarely discussed in discussions about rising pricing.

According to the conditions of his offer, Mr Niccol’s yearly base salary will be $1.6 million (£1.2 million). In addition, he could receive a $7.2 million performance incentive and up to $23 million in Starbucks stock per year.

According to a 2021 UN assessment, the world’s wealthiest 1% emit twice as much carbon as the poorest 50% combined.

This month, Starbucks announced that Mr Niccol will take over as CEO, replacing Laxman Narasimhan.

The statement came as the coffee chain sought to bolster declining sales.

Mr Niccol had managed the Mexican fast food giant Chipotle since 2018, guiding the company through a crisis caused by food poisoning incidents.

During his tenure, the company’s sales doubled, and its stock rose from less than $7 per share to more than $50.

Chipotle also opened around 1,000 new locations and introduced new technologies to automate food production.

In recent months, it has been viewed as a bright spot in the restaurant industry, when many firms have claimed that customers are spending less.

Source: BBC