Starbucks has faced criticism for setting up a remote office for its new CEO, Brian Niccol, who will be based in Newport Beach, California, rather than at the company’s Seattle headquarters. Niccol will be required to follow Starbucks’ hybrid work policy, which mandates corporate employees to be in the office three days per week. Critics have pointed out the environmental impact of Niccol’s commute on a corporate jet between Southern California and Seattle, with concerns about the emissions and sustainability goals of the company.
The decision to have a remote CEO is not entirely unusual, as other companies like Victoria’s Secret and Bumble have also appointed CEOs who are based in different locations from the company headquarters. Niccol’s move to Starbucks was likely influenced by the ability to continue spending time in California, as well as the attractive compensation package offered by the coffee giant. His appointment comes at a time when Starbucks is looking to turn around declining sales and navigate increasing activist investor campaigns.
Niccol’s background includes leadership roles at Chipotle and Taco Bell, where he helped drive sales growth and stock price increases. He will be replacing Laxman Narasimhan as the fourth CEO at Starbucks in the past two years. Niccol’s appointment has been met with positive investor response, with Starbucks’ stock price increasing by over 20% following the announcement of his new role. He will officially start at Starbucks on September 9th.
Critics have raised concerns about Niccol’s ability to lead effectively from a remote location and the potential impact on other corporate employees at Starbucks. Some have called for Niccol to lead by example, tackle big challenges, and empower employees to bring their best ideas to the table. The company’s goal to reduce greenhouse gas emissions by 50% within a decade has further highlighted the environmental implications of Niccol’s commuting arrangements.
It remains to be seen how Niccol’s remote work setup will impact Starbucks in the long run and whether he will be able to effectively engage with partners, customers, and stakeholders from his base in Newport Beach. As the company continues to navigate challenges and work towards its sustainability goals, the leadership of Niccol will be closely watched to see how it shapes the future of the coffee giant. Ultimately, Niccol’s track record and ability to drive connections, culture, and results will be key in determining the success of his tenure at Starbucks.
