California, US

Starbucks' newly-appointed CEO Brian Niccol will be supercommuting to the coffee giant's headquarters in Seattle from his residence in California via corporate jet when he takes charge next month.

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According to terms of his employment, made public in a Securities and Exchange Commission (SEC) filing last week, Niccol has been allowed to work from home. However, he will be travelling 1,600 kilometres whenever he decides to travel to Seattle to oversee work at the office. 

"During your employment with the Company, you will not be required to relocate to the Company’s headquarters (currently in Seattle, Washington). 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," read the letter. 

Additionally, Starbucks will directly pay or reimburse Niccol for the costs of temporary housing arrangements in Seattle when he is in the city. 

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The 50-year-old will be paid a base salary of $1.6 million every year and might earn an annual cash bonus that can range from $3.6 million to $7.2 million, depending on the performance. He is also eligible for annual equity awards worth up to $23 million.

"You will receive a $10,000,000 cash signing bonus, in consideration for cash incentive opportunities that you are forfeiting by leaving your current employer," the letter added. 

Watch | TV news anchor sacked in Turkey for using Starbucks cup on broadcast

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Niccol replaces Narasimhan

Starbucks' Indian-origin CEO Laxman Narasimhan was fired earlier this month and instantly replaced by Niccol, who had been on the radar of the company for some time. The American company is looking to turn around its business while contending with broad-based sales declines, especially in the US and China. 

It is perhaps one of the reasons why Niccol has been granted the freedom to work from home. As the CEO of Chipotle, he helped the chain rebound from its troubles while guiding it through a tricky pandemic and post-pandemic market. According to reports, under his tenure, Chipotle's stock soared 773 per cent. 

Also read | Not working past 6 pm cost Starbucks CEO Narasimhan his job? Internet speculates

Last week, Victoria's Secret also made a similar concession when it hired Hillary Super from Rihanna's lingerie brand to take over its next chief executive. Super will be working from the retailer's New York office instead of the company's headquarters near Columbus. Ohio. 

(With inputs from agencies)