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Starbucks caused outrage when it announced that the company’s new CEO, Brian Niccol, would be able to work from home rather than at the company’s headquarters in Seattle, Washington.
The popular coffee chain first issued a press release on August 13 announcing Niccol’s new title after serving as Chipotle’s CEO for six years. His official start date is September 9, until then Starbucks’ CFO Rachel Ruggeri will serve as interim CEO.
On August 14, Starbucks released a filing with the Securities and Exchange Commission (SEC) revealing some details about Niccol’s new position. According to the report, Starbucks’ new CEO will have the opportunity to work from home as he will be assigned “a small remote office” in Newport Beach, California, upon starting his duties.
In addition, not only will Niccol have an assistant of his choosing at the branch, but the office will also be maintained “at the expense” of his company. The ability to work remotely means Niccol “will not have to relocate” to the brand’s headquarters, which is located in Seattle, Washington.
Although he will occasionally have to commute from California to Seattle for work, Niccol will have the opportunity to do so on a company plane, it is reported The Wall Street Journal.
The SEC filing also disclosed Niccol’s annual salary, which was listed as $1.6 million in his offer letter, and he also received a $10 million cash bonus.
On X, formerly known as Twitter, many people criticized Niccol’s ability to work from home – in addition to other perks – while his employees work at Starbucks headquarters in Seattle.
“Just a terrible decision by the Starbucks board (and this new CEO)… a $10 million signing bonus that allows him to work from LA while enforcing return-to-work policies for the other employees,” one wrote.
“Interesting that CEOs think it’s OK for them to work from home, but not for other office workers,” said another. “Potentially a huge pay package for the new CEO of Starbucks, and he doesn’t even have to move to Seattle.”
“Because of this man, I had to force two single mothers on my team to come back to the office four days a week and now Starbucks lets him work from home 1,000 miles from Seattle,” a third wrote sarcastically.
A fourth person tweeted: “It seems wrong that a company like Starbucks has a CEO who works from home. This isn’t software. This business is about going to a store and hanging out and drinking coffee.”
While social media users questioned the benefit of working from home for the CEO, they also pointed out that Starbucks announced last year that employees at all regional offices and the company’s SSC (Starbucks Support Center) would be required to be present in the office at least three times a week.
“The future Starbucks CEO doesn’t even have to come into the office and may live 1,000 miles away from headquarters. It seems there is a different rule for board members than for regular employees,” wrote one.
When Starbucks announced its CEO on August 13, Niccol said in a statement how excited he was to join the team.
“I have long admired the iconic Starbucks brand, its unique culture and its commitment to strengthening human connections around the globe. As I embark on this journey, I am energized by the tremendous potential to drive growth and continue to enhance the Starbucks experience for our customers and partners, while staying true to our mission and values,” he said in the press release.
Before stepping down as CEO of Chipotle, Niccol was CEO of Taco Bell, where he previously held roles including Chief Marketing and Innovation Officer and President.
