Starbucks has secured incoming CEO and Chair Brian Niccol with an $85 million compensation package, enticing him from his former role as chief executive at Chipotle Mexican Grill. Niccol officially steps into his new role on Sept. 9, facing the challenge of reviving Starbucks’ declining sales, enhancing the in-store customer experience, and addressing struggles in the Chinese market.

According to a recent filing, Niccol’s pay plan includes a base salary of $1.6 million annually, with the potential to earn up to $7.2 million more in cash. Additionally, he’s eligible for up to $23 million in annual equity awards. The majority of his compensation, however, comes from a one-time award of $10 million in cash and $75 million in equity to compensate for the compensation he forfeited by leaving Chipotle. This equity will vest over a three-to-four-year period, contingent on company performance and Niccol’s tenure.

Starbucks emphasized that Niccol’s compensation is closely tied to the company’s performance and the shared success of all stakeholders, expressing confidence in his ability to deliver long-term value.

BrianNiccol Photograph By Christina Gandolfo 1588359022
Brian Niccol led a resurgence in Chipotle’s stock: rising up to 773% over the last year.

Previously, Niccol earned a $1.3 million base salary at Chipotle, with a total compensation of $22.5 million. Under his leadership, Chipotle’s stock surged 773%, significantly boosting the value of his compensation. In comparison, Niccol’s compensation package at Starbucks surpasses that of his predecessor, Laxman Narasimhan, who received a $1.3 million base salary, potential cash bonuses up to $5.85 million, and $13.6 million in equity awards.

Unlike Narasimhan, Niccol will not be required to relocate to Starbucks’ Seattle headquarters.