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New Starbucks CEO allowed to use company jet for 1,000-mile commute to Seattle headquarters


New Starbucks CEO allowed to use company jet for 1,000-mile commute to Seattle headquarters

SEATTLE:

New Starbucks CEO Brian Niccol will not be a regular at the company’s Seattle headquarters when he takes office next month. Instead, he will commute weekly from his home in California.

That arrangement, announced in Niccol’s offer letter last week, allows him to work from a “small remote office” in Newport Beach, California, rather than relocating permanently to Seattle. To make his commute easier, Starbucks is providing him with a corporate jet for his travels.

A Starbucks spokesperson told CNN: “Brian Niccol has proven himself to be one of the most effective leaders in our industry, delivering significant financial returns over many years. We are confident in his experience and ability to lead our global business and brand and deliver long-term, enduring value to our partners, customers and shareholders.”

However, Niccol’s use of a private jet has raised concerns about its environmental impact, especially given Starbucks’ recent efforts to promote sustainability, such as introducing cups with less plastic and eliminating plastic straws.

Air travel is a major source of carbon emissions, emitting about 800 million tons of carbon dioxide annually, according to the International Energy Agency. Greenpeace criticized the rule on social media, calling it “unacceptable” and pointing to a petition to ban private jets. The environmental organization declined to comment further when asked by CNN.

Despite their smaller size, private jets consume up to ten times more fuel per passenger mile than commercial aircraft, according to the Institute for Policy Studies.

Niccol is expected to travel frequently and visit Starbucks stores and employees around the world as he oversees a global network of 39,000 stores and 450,000 employees.

In 2023, Starbucks ordered the company’s employees to work in the office three days a week. Employees near the Seattle headquarters will be required to be present on Tuesday, Wednesday and one additional day agreed upon with their supervisors.

Niccol, who will receive a base salary of $1.6 million and a signing bonus of $10 million, could earn millions more depending on the company’s annual performance, Starbucks filings show.

Earlier this month, Starbucks announced that Niccol will succeed Laxman Narasimhan, whose tenure as CEO lasted less than two years. Niccol’s mission is to revitalize Starbucks and replicate the success he achieved over the past six years at Chipotle.

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