Starbucks Corporation (NASDAQ:SBUX) announced yesterday that Brian Niccol will take the helm as the company's new chairman and chief executive officer, effective September 9. The company's stock responded positively to the news, with shares jumping about 22% in two days.
Niccol's compensation package as CEO includes a base salary of $1.6 million per year. Moreover, he is set to receive annual equity awards with a target value of $23 million and a cash signing bonus of $10 million.
The appointment has been met with approval from activist investor Elliott, which has been engaged with Starbucks' board over the past two months.
Partners Jesse Cohn and Marc Steinberg from Elliott expressed their support for Niccol's leadership, stating, "We look forward to continuing our engagement with the Board as it works toward the realization of Starbucks’ full potential."
Elliot regards the appointment of Niccol as a transformational step forward for Starbucks. The move comes after Laxman Narasimhan stepped down from his role as CEO and director of the company.
The market's reaction to the executive change at Starbucks reflects investor optimism about the company's direction under Niccol's leadership. Prior to this role, Niccol served as the CEO of Chipotle Mexican Grill (NYSE:CMG), where he was credited with turning the company around.
Niccol is widely regarded to be the restaurant industry's top executive.