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Starbucks has removed a $250,000 annual cap on CEO Brian Niccol’s personal use of the corporate jet, citing heightened safety concerns and "credible threat actors." Niccol currently uses the aircraft to commute roughly 1,000 miles from his home in California to the company’s Seattle headquarters. While he was previously required to reimburse the firm for personal travel exceeding the quarter-million-dollar limit, a recent security review recommended he use the private jet for all air travel. The new arrangement will be reviewed by the board every three months.
The decision comes as many US companies have been beefing up security for executives, after the fatal shooting of UnitedHealthcare chief executive Brian Thompson last year. Starbucks said a study carried out by an independent third party had "determined that enhanced personal security measures were necessary for Mr. Niccol's personal safety".
It said: "Given Mr Niccol's chief executive role, the enhanced media attention to which Mr Niccol and Starbucks are subject, and the current threat landscape, the security study for Mr Niccol also recommended that Mr Niccol use private aviation for all air travel, whether for personal, commuting, or business purposes."
Starbucks' compensation committee recommended in September that the cap be replaced by a quarterly review of his personal flights, which was approved by board members.
When Niccol was announced as Starbuck's new chief executive in summer 2024, replacing Laxman Narasimhan, he came under fire when it was revealed he would be commuting almost 1,000 miles on the company plane.
Critics said there was a discrepancy between Starbucks' public stance on green issues and the lifestyles of its top executives.
Niccol's job offer said he would "not be required to relocate to the company's headquarters", but added: "You agree to commute from your residence to the company's headquarters... as is required to perform your duties and responsibilities".
The document stated that he would be eligible to use the company's aircraft for "business related travel" and for "travel between his city of residence and the company's headquarters".
Under a time-share agreement, he would reimburse Starbucks for personal use of the jet above a $250,000 annual cap.
