Andrea Saint Martin
(CNN) — Starbucks’ new CEO Brian Niccol won’t be a regular presence at the company’s Seattle headquarters, where he takes the helm next month. Instead, he’ll commute weekly from his home in California.
The deal was revealed last week in Niccol’s offer letter, which gives him a “small remote office” at his home in Newport Beach, California, and does not require him to permanently move to the coffee chain’s offices in Seattle, more than 1,000 miles away. Starbucks will provide him with a corporate jet to travel back and forth.
“Brian Niccol has proven 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 are confident in his experience and ability to serve as a leader of our global business and brand, delivering lasting, long-term value for our partners, customers and shareholders.”
But Niccol’s private jet profit has drawn attention to the climate change implications of such flights and Starbucks’ portrayal as an environmentally friendly company, which recently launched new cups that use less plastic and eliminated straws.
Starbucks replaces its CEO with Chipotle CEO
Jet travel, whether on large commercial aircraft or small private planes, is a major source of carbon emissions, responsible for about 800 million tonnes of carbon dioxide a year or more than 2% of total global energy-related emissions, according to the International Energy Agency.
On Friday, Greenpeace posted on social media that the deal is “unacceptable” and included a link to a petition to ban private jets. The environmental group had no further comment when contacted by CNN.
Although private jets consume a fraction of the fuel used by commercial aircraft, they still consume about 10 times more fuel per passenger mile due to their limited capacity, according to a report by the Institute for Policy Studies.
Niccol is also expected to travel frequently, visiting locals and workers as he runs a global operation of 39,000 coffee shops 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 company headquarters will come in on Tuesdays, Wednesdays, and one other day agreed upon with managers.
Niccol has a base salary of $1.6 million and received a $10 million signing bonus, and will also collect millions in additional cash depending on the company’s annual performance, according to Starbucks’ regulatory filing.
Earlier this month, Starbucks announced that Niccol will replace Laxman Narasimhan, whose tenure as CEO lasted less than two years. Niccol is tasked with turning Starbucks’ fortunes around and mirroring the success he has had at Mexican-inspired food chain Chipotle over the past six years.
–CNN’s Chris Isidore contributed to this report.
