Starbucks is allocating $250,000 in its annual budget to incoming CEO, ex-Chipotle head Brian Niccol, so that he can commute via private company jet to Seattle.
When Niccol was announced as CEO two weeks ago, there was initially speculation about whether he would have to move from his home in Newport Beach, Calif. or if Starbucks would possible consider moving its own headquarters — which have been a Seattle mainstay since the birth of the company and the coffee industry.
As it turns out, neither speculated option will be utilized, at least for now. According to Starbucks’ offer letter to Niccol, in a document that was posted to the United States Securities and Exchange Commission, Starbucks will be establishing a satellite office in Newport Beach and hiring an assistant for Niccol when he works out of his home office. But Niccol will also have to agree to establish a secondary residence in Seattle and commute back and forth when he’s not living there:
“During your employment with the Company, you will not be required to relocate to the company’s headquarters,” the offer letter stated. “You agree to commute from your residence to the company’s headquarters (and engage in other business travel) as is required to perform your duties and responsibilities.”
To accommodate this regular commute of approximately 1,200 miles each way, Starbucks said that Niccol will be “eligible to use the company’s aircraft” to travel back and forth between Newport Beach and Seattle both for work and for personal travel “up to a maximum amount of $250,000 per year, which amount will be based on the aggregate incremental cost to the company.”
Additionally, according to the offer letter, Starbucks agreed to pay for Niccol’s temporary housing costs for up to three months until he is situated in a secondary home in Seattle, as well as a driver to transport him back and forth to the office.
“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 told NRN. “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.”
Starbucks’ commitment to helping its new CEO commute thousands of miles regularly has raised the alarm for environmental activists, especially since Starbucks has recently announced new operational sustainability commitments, including solar power projects and a second returnable beverage cup pilot program in partnership with NextGen.
A 2021 report from the European Federation for Transport and Environment found that private jets emit up to two tons of carbon dioxide per hour, which would mean that a roundtrip commute from Newport Beach to Seattle at more than two hours each way could emit at least eight tons of carbon dioxide into the atmosphere: that’s double the carbon dioxide the average person produces annually.
This employment benefit seems to be at odds with Starbucks’ 2020 plan to “store more carbon than the brand emits” by 2030.
Starbucks declined to respond on the record to NRN’s request for further comment on the environmental impacts of Niccol's commute.
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