Starbucks has ignited controversy with its decision to allow its newly appointed CEO, Brian Niccol, to work from home rather than at the company’s headquarters in Seattle, Washington.
The coffee giant officially introduced Niccol, the former CEO of Chipotle, in a press release on August 13. Niccol is set to assume his role on September 9, with interim CEO Rachel Ruggeri overseeing operations until then.
Details of Niccol’s position emerged on August 14 through a Securities and Exchange Commission (SEC) filing. The document disclosed that Niccol would be granted the option to work remotely from a small office located in Newport Beach, California. This arrangement includes the provision of an assistant and the maintenance of the office at Starbucks’ expense. Notably, Niccol will not be required to relocate to Seattle, although he will travel to the city occasionally via corporate plane, according to The Wall Street Journal.
The SEC filing also outlined Niccol’s compensation package, which includes an annual salary of $1.6 million and a substantial cash signing bonus of $10 million.
The decision has drawn sharp criticism on social media, where many users have expressed discontent over the disparity between Niccol’s remote work privileges and the company’s policies for other employees. Critics have highlighted the perceived inequity of the CEO receiving a lucrative bonus and remote work benefits while other staff are required to return to the office.
One Twitter user condemned the decision, stating, “A $10 million signing bonus and the ability to work remotely from LA, while imposing back-to-work policies on other employees is a terrible decision by the Starbucks board and the new CEO.”
Another user remarked, “It’s remarkable how CEOs can work remotely while other office workers are expected to return to the office. A significant pay package for Starbucks’ new CEO without even having to move to Seattle.”
A third commenter sarcastically noted, “I had to force two single mothers on my team to return to the office four days a week because of this decision. Now Starbucks is letting its CEO work remotely from 1,000 miles away.”
Another individual expressed disapproval, stating, “It seems inappropriate for a company like Starbucks to have its CEO working from home. The business is centered around in-store experiences.”
This backlash is particularly pointed given Starbucks’ previous announcement that employees in regional offices and the Starbucks Support Center (SSC) would be required to work in the office at least three times a week.
Upon his appointment, Niccol expressed enthusiasm about joining Starbucks, stating, “I have long admired Starbucks’ iconic brand, unique culture, and commitment to enhancing human connections around the globe. I am excited about the opportunity to drive growth and enhance the Starbucks experience for our customers and partners, while staying true to our mission and values.”
Niccol, who stepped down from his role as CEO of Chipotle, previously served as CEO of Taco Bell, where he held various leadership positions, including chief marketing and innovation officer and president.