JAN 29 – Starbucks has scrapped a $250,000 (£181,000) cap on its chief executive’s use of the coffee chain’s company jet for personal travel because of concerns about his safety.
Brian Niccol uses the jet to commute almost 1,000 miles (1,600km) from his family home in Newport Beach, California, to the firm’s headquarters in Seattle.
Until September, his personal use of the plane was limited to an annual cap, after which he was required to reimburse the company.
But Starbucks said it had been lifted after a security review recommended he use it for all air travel due to increased media attention and “credible threat actors”. The arrangement will now be reviewed 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 1,0000 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.
Given the profile of Niccol and Starbucks in Seattle, the third party review also recommended a “dedicated car and driver service for ground transportation” when he travels to the Washington state city where he also has a residence.
Niccol received a compensation package of almost $31m in 2025, and more than $95m the previous year.
His total security expenses were $1.1m in 2025, a company filing said, plus $997,000 in expenses relating to his use of the Starbucks jet for commuting and personal travel.
Niccol was recruited from Chipotle Mexican Grill, where he helped the brand recover from a crisis after food poisoning outbreaks. His task at Starbucks was to stop a sales slump at the coffee chain.
His “Back to Starbucks” strategy included speeding up service, simplifying its “overly complex menu” and reviewing its pricing.
Niccol also announced a deal to sell a major stake of Starbucks’ China business, cut 2,000 jobs and closed underperforming coffee shops.
On Wednesday, Starbucks announced that it had recorded its first sales growth at established stores in the US for two years.
US like-for-like sales, which includes stores open at least a year, rose by 4% during the three months to 28 December, 2025, compared with the same period in 2024. Overall, global comparable sales also grew by 4% year-on-year.
Total turnover increased 6% to $9.9bn from $9.3bn for the same period in 2024.
However, pre-tax profit fell to $764.8m from $1bn. Starbucks said profits had been impacted by “labor investments” in support of its turnaround strategy.
It also pointed to “inflationary pressures, primarily driven by tariffs and elevated coffee pricing”.
By BBC
