Starbucks

Photo by Jason Yuen on Unsplash

Starbucks’ New CEO Brian Niccol Slammed for Seattle Private Jet Commute

August 26, 2024

Starbucks’ new CEO Brian Niccol is under fire for his announcement that he intends to engage in a “super-commute” between Newport Beach, California, and Seattle, Washington, to fulfill his duties as the coffee giant’s man in charge starting in September.

CNBC reported that the new CEO’s offer letter, which was made public in an SEC filing last week and signed by Mellody Hobson, the Independent Starbucks Board of Directors chair, allows for him to maintain a remote office in his luxe California abode while using the company’s private jet on an as-needed basis to do a “super-commute” to the coffee giant’s Seattle headquarters.

“You will be eligible to use the Company aircraft for (i) business-related travel in accordance with the Company’s travel policy, (ii) travel between your city of residence and the Company’s headquarters in Seattle, Washington and (iii) your personal travel in accordance with the Company’s policies, up to a maximum amount of $250,000 per year, which amount will be based on the aggregate incremental cost to the Company,” notes the provision in the offer letter.

A spokesperson for Starbucks informed CNBC that the company’s hybrid work policy requires Niccol to be in the office at least three days a week.

“Brian’s primary office and a majority of his time will be spent in our Seattle Support Center or out visiting partners and customers in our stores, roasteries, roasting facilities and offices around the world,” the spokesperson said to the outlet. “His schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners.”

The announcement has put Niccol, and Starbucks, under fire.

“What leaves a sour taste is the idea he can use a private jet to nip 1,000 miles between California and Seattle,” said Dan Coatsworth, an investment analyst at AJ Bell, to the BBC.

Coatsworth also added that this practice was bad for the environment, sent a bad message to employees, and wasn’t economically feasible.

“[It’s] ultimately not a practical way to run a $105B business with an estimated 400,000 employees,” he said. “A leader needs to be at the heart of a business, not sitting on the beach enjoying the perks of the job. The fact Brian Niccol was drafted in to give a new lease of life to Starbucks implies he has a big challenge ahead. This isn’t taking the reins of a business firing on all cylinders; it’s a repair job which means being in the engine room at all times.”