The Blubber

Brian Niccol is poised to receive a significant financial package as he steps into the role of Starbucks' next CEO, earning far more than most employees in the company's coffee shops.

According to a filing made by Starbucks with the SEC on Wednesday, Niccol could potentially earn up to $113 million. His annual base salary will be $1.6 million, and he will be eligible for a yearly bonus of up to $7.2 million. Additionally, Niccol will receive a $10 million sign-on bonus within his first six months at the company.

However, the bulk of Niccol's earnings will come in the form of stock options. Upon his start date on September 9, he is set to receive a stock grant valued between $75 million and $80 million. He will also be eligible for an annual stock grant of $23 million, with the first installment scheduled for Starbucks' next fiscal year. These stock awards will fully vest over a period of four years, according to the filing.

A Starbucks spokesperson expressed confidence in Niccol’s leadership, noting, "Brian Niccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years. His compensation at Starbucks is directly tied to the company’s performance and the shared success of all our stakeholders."

In contrast, the average Starbucks barista in the United States earns around $49,287 annually, based on salary estimates from Glassdoor, which also include bonuses and other compensation. These estimates are derived from 1,650 salaries submitted anonymously by Starbucks employees as of June.

Starbucks workers in hundreds of stores have been pushing for contracts that include better pay in recent years. Negotiations between the company and Workers United, the union representing baristas, resumed earlier this year, although no contracts have been finalized yet.

Niccol's compensation package is notably higher than that of outgoing CEO Laxman Narasimhan. Last year, Narasimhan earned just under $15 million, according to a separate SEC filing. Nevertheless, Narasimhan is expected to receive a severance payout of nearly $11 million under Starbucks’ policies, as noted in a compensation document filed with the SEC.