Summary
- The new Starbucks CEO will not have to relocate to headquarters, with unique travel benefits included in his compensation package.
- Brian Niccol’s new remote work arrangement allows him to commute between Seattle and Newport Beach using company-owned jets.
- Starbucks’ corporate jets, Gulfstream G550s, boast impressive performances with Rolls-Royce engines and upgraded cabins.
On Sunday, August 11, Starbucks officially signed its newest Chief Executive Officer (CEO), Brian Niccol. Starbucks recently made the offer letter public, via a Securities and Exchange Commission (SEC) filing, late last week. This filing reported that Niccol will receive a base salary of $1.6 million, an annual cash bonus that ranges from $3.6 million to $7.2 million, and the ability to cash in on annual equity awards that can total up to $23 million. However, the offer letter filed with the SEC also features several other unique characteristics, some of which are not typically seen by CEOs of large companies.
A look at the new working arrangements
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One feature of the new agreement is that Niccol will not be required to relocate to the Starbucks headquarters, where previous CEOs have worked from. This means that Niccol’s new gig will allow him to work as a hybrid-employee. According to CNBC, Niccol will be able to work remotely from his current house in Newport Beach, California. This means he will need to commute to the Starbucks headquarters, which is located in Seattle, Washington, up to three days per week. A spokesperson for Starbucks told Simple Flying that this is in direct alignment with the company’s hybrid work policies. This policy requires employees to be in the office at least three days per week, unless the employee is traveling for work-related activities. While he is in Seattle, Starbucks will reimburse Niccol for lodging, creating another unique working arrangement, per the SEC filing.
Photo: Media_works | Shutterstock
The offer letter also states that Starbucks will be responsible for setting up a satellite office for Niccol to work at. This office will be maintained by Starbucks and the company will also hire a personal assistant for Niccol for when he is working in Newport Beach.
However, when he is not working at Newport Beach, Niccol will most likely be forced to commute from California to Seattle, Washington. This commute is just over 1,000 miles, meaning he will most likely fly between the two locations. The offer letter also states that Niccol will be eligible to utilize the company-owned aircraft for business-related travel, travel between his residence and the Starbucks headquarters, and additional personal travel up to $250,000 per year.
In a statement to Simple Flying, a Starbucks spokesperson stated,
“Starbucks maintains a corporate aircraft to provide secure and timely business-related transportation for company executives. All travel must be conducted in accordance with establish corporate travel policies.”
This unique arrangement means that the new Starbucks CEO may be commuting 1,000 miles via the company corporate jet to get to work several times a week. Let’s take a closer look at the two aircraft that Starbucks currently owns, which may be taking Niccol to work from his home in Newport Beach.
The two Starbucks corporate jets
According to JetSpy, two aircraft have a listed Federal Aviation Administration (FAA) registered owner of Starbucks Capital Asset Leasing Company LLC, which means it is a Starbucks-owned aircraft. These two aircraft are both Gulfstream G550s, and they are registered as N721L and N721V.
Photo: viper-zero I Shutterstock
The older aircraft, N721L, was first manufactured in 2007, and it has a serial number of 5140, according to JetSpy. Starbucks has owned the registration of this aircraft since January 2017, per FlightAware. This aircraft has flown a total of 51 flights so far in 2024, which has amounted to 191 total flight hours. These flights have used up over 80,000 gallons of aviation fuel, which has amounted to over 800 metric tons of carbon emissions. Per JetSpy, the aircraft’s three most visited airports include:
- Boeing Field King County International Airport (BFI) in Seattle, Washington
- Phoenix-Mesa-Gateway Airport (AZA) in Arizona
- Philadelphia International Airport (PHL) in Pennsylvania
Starbucks’ newer aircraft, N721V, was first delivered by Gulfstream in 2013. This aircraft has a serial number of 5412. Starbucks Capital Asset Leasing Company LLC purchased this aircraft new and took delivery of the aircraft in January 2013, per FlightAware. This aircraft is utilized slightly less than N721L, as it has only flown 46 times so far in 2024. These 46 flights have accumulated 201 flight hours, however. These flight hours have used nearly 88,000 gallons of aviation fuel, which has contributed to 841 metric tons of carbon emissions. Per JetSpy, the aircraft’s three most visited airports include:
- Boeing Field King County International Airport (BFI) in Seattle, Washington
- London Luton Airport (LTN) in Bedrodshire, England
- Chicago O’Hare International Airport (ORD) in Illinois
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About the Gulfstream G550
The G550 is one of Gulfstream’s most prominent business jets. The aircraft was first developed in the early 2000s as a replacement for the Gulfstream V. However, Gulfstream added several drag reduction improvements and upgraded engines to help improve the aircraft’s fuel efficiency. These upgrades also increase the maximum takeoff weight (MTOW) and improved its takeoff performance.
Photo: Ryan Fletcher | Shutterstock
The first prototype aircraft flew for the first time in July 2002. Eventually, the aircraft received its type certificate from the Federal Aviation Administration (FAA) in August 2003. Gulfstream began delivering G550s later that year. Overall, the Gulfstream G550 has the following performance specifications:
|
Length |
96 feet five inches |
|---|---|
|
Height |
25 feet ten inches |
|
Wingspan |
93 feet six inches |
|
Maximum takeoff weight (MTOW) |
91,000 pounds |
|
Maximum speed |
Mach 0.885 (656 miles per hour) |
|
Range |
6,750 nautical miles (7,770 miles) |
|
Service ceiling |
51,000 feet |
The G550 can achieve these impressive performance measures with the help of its two powerful engines, Rolls-Royce BR710 turbofan engines. These each provide over 15,000 pounds of thrust. This helps the aircraft achieve impressive runway performance, which includes a required runway for take off that is under 6,000 feet and a required runway for landing that is just over 2,750 feet.
Additionally, the G550 has an upgraded cabin, which allows it to fit a maximum of 19 passengers. Gulfstream moved the cabin door forward in the fuselage, which allowed an additional window to be installed compared to the GV. Inside the cockpit, the G550 utilizes the Honeywell Primus Epic avionics system, which includes a heads-up guidance system and an enhanced vision system.