Starbucks is giving its new CEO Brian Niccol a private jet to commute between his California home and Seattle office
New York
CNN
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New Starbucks CEO Brian Niccol won't be a constant presence at its Seattle headquarters where he takes the helm next month. Instead, he's going to commute weekly from his California home.
The setup was revealed last week in Niccol's offer letter, which is giving him a "small remote office" at his home in Newport Beach, California, and not requiring him to permanently relocate to the coffee chain's Seattle offices more than 1,000 miles away. Starbucks is giving him a corporate jet to use to commute back and forth.
"Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years," a Starbucks spokesperson said in a comment to CNN. "We're confident in his experience and ability to serve as the leader of our global business and brand, delivering long-term, enduring value for our partners, customers and shareholders."
But Niccol's private jet perk has brought some attention to the climate change implications of those flights and Starbucks' projection as an environmentally friendly business, which recently rolled out new cups that use less plastic and eliminated plastic straws.
Jet travel, whether via large commercial jet or small private jet, is a major source of carbon emissions, responsible for about 800 million tons of carbon dioxide annually or more than 2% of total global energy-related emissions, according to the International Energy Agency.
A customer inside a Starbucks coffee shop in New York, US, on Monday, Jan. 29, 2024.
Angus Mordant/Bloomberg/Getty Images
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On Friday, Greenpeace posted on social media that the arrangement is "unacceptable" and included a link to a petition to ban private jets. The environmental group didn't have any additional comments when contacted by CNN.
Although private jets burn a fraction of the fuel of a commercial jet, they still consume an estimated 10 times more per passenger mile traveled given their limited capacity, according to a report by the Institute for Policy Studies.
Niccol is also expected to be traveling often, visiting stores and workers since he's running a global operation of 39,000 stores and 450,000 employees.
Starbucks announced in 2023 that its corporate employees must work from the office three days a week. Employees within commuting distance of the company's headquarters are required to be there on Tuesdays, Wednesdays and another day to be agreed upon with managers.
Niccol has a $1.6 million base salary and received a $10 million signing bonus, and will also rake in millions in additional cash depending on the company's yearly performance, according to Starbucks' regulatory filing.
Earlier this month, Starbucks announced that Niccol would replace Laxman Narasimhan, whose stint as CEO lasted less than two years. Niccol is tasked with turning Starbucks' fortunes around and mirroring the success he's had at Mexican-inspired food chain Chipotle for the past six years.
