Title: Starbucks' New CEO to Potentially Earn Over $100 Million in First Year

Starbucks announced on Tuesday that Brian Niccol, the former CEO of Chipotle, will be taking over as the chairman and CEO of the coffee giant, replacing Laxman Narasimhan. Niccol, known for his success in turning around struggling companies, will assume his new role on September 9th.

Having gained recognition for his leadership in reviving Chipotle's fortunes, Niccol's appointment at Starbucks comes with high expectations. The global coffee chain hopes that his expertise and innovative strategies will help reinvigorate sales and reestablish Starbucks as a premium destination for customers.

According to a filing with the Securities and Exchange Commission, Niccol's compensation package is incentive-laden, potentially bringing his earnings to well over $100 million in his first year alone. As part of his contract, he will receive a cash bonus of $10 million and $75 million in equity, compensating for his departure from Chipotle. The equity component of his pay package will vest over time, depending on the achievement of performance targets.

In addition to his salary of $1.6 million per year, Niccol will have the opportunity to receive an annual cash incentive of up to 450% of his base salary, amounting to a potential $8.8 million. Starting in fiscal 2025, he will also be eligible for annual equity awards worth up to $23 million.

Notably, Starbucks has decided not to require Niccol to relocate from his current residence in Newport Beach, California, where Chipotle is also based. Instead, the company will help set up a small remote office in Newport Beach and provide an assistant to support Niccol. He will travel to Seattle as needed and undertake business travel as necessary.

Rachel Ruggeri, Starbucks' Chief Financial Officer, will serve as the interim CEO until Niccol officially joins the company in early September. Share prices remained relatively stable after the announcement, but surged by 20% when Niccol's appointment was initially revealed.

Starbucks' decision to bring in Niccol reflects their determination to revitalize the company and regain its position as a market leader. With his successful track record of turning around struggling businesses, Niccol's leadership is eagerly awaited by investors and stakeholders alike.