Starbucks Lifts $250K Cap on CEO’s Private Jet Use
Starbucks removes its $250,000 jet cap for CEO Brian Niccol after a security review, sparking debate over executive perks and corporate jet use.
Starbucks has removed the $250,000 (£181,000) limit on its chief executive's personal use of the coffee chain's corporate jet, citing security concerns.
Brian Niccol uses the jet to commute approximately 1,000 miles (1,600 km) between his family home in Newport Beach, California, and the company's headquarters in Seattle.
Until September, there was an annual limit on his personal use of the plane, after which he would have to reimburse the company.
But Starbucks said the limit was removed following a security review, which recommended he use the jet for all air travel due to increased media attention and "credible threats." The arrangement will now be reviewed every three months.
The decision comes as several US companies are increasing security for their executives following the fatal shooting of UnitedHealthcare chief executive Brian Thompson last year.
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Starbucks said a study conducted by an independent third party "determined that enhanced security measures were necessary for Mr. Niccol's personal safety."
It added: "Given Mr. Niccol's role as chief executive officer, the increased media attention on Mr. Niccol and Starbucks, and the current threat environment, the security study also recommended that Mr. Niccol utilize private aviation for all air travel, whether for personal, commuting, or business purposes."
Starbucks' compensation committee recommended in September that the limit be replaced with a quarterly review of his personal flights, which was approved by board members. When Laxman Narasimhan was replaced by Nicole as Starbucks' new chief executive in the summer of 2024, questions arose when it was revealed she would be traveling nearly 10,000 miles on the company plane.
Critics pointed to a contradiction between Starbucks' public stance on environmental issues and the lifestyle of its top executives.
Nicole's job offer stated that she would "not be required to relocate to the company's headquarters," but also added: "You agree to commute between your residence and the company's headquarters... as necessary to fulfill your duties and responsibilities." The document stated that she would be eligible to use the company aircraft for "business-related travel" and "travel between [her] city of residence and the company's headquarters."
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Under a time-share agreement, she would reimburse Starbucks for personal use of the jet exceeding an annual limit of $250,000.
Given Nicole's and Starbucks' profile in Seattle, a third-party review also recommended a "dedicated car and driver service for ground transportation" when she travels to the Washington state city where she also maintains a residence.
Nicole received a compensation package of approximately $31 million in 2025, and more than $95 million the previous year.
A company filing stated that her total security expenses in 2025 were $1.1 million, plus $997,000 in expenses related to using the Starbucks jet for commuting and personal travel.
Nicole was recruited from Chipotle Mexican Grill, where she helped the brand recover from a food poisoning outbreak. Her task at Starbucks was to reverse declining sales at the coffee chain. His "Back to Starbucks" strategy included speeding up service, simplifying its "overly complex menu," and reviewing its pricing.
Schultz also announced a deal to sell a significant stake in Starbucks' China business, cut 2,000 jobs, and closed underperforming coffee shops.
On Wednesday, Starbucks announced that it had recorded its first sales increase in U.S. stores in two years.
Like-for-like sales in the U.S., which include stores open for at least a year, rose 4% during the three months ending December 28, 2025, compared to the same period in 2024. Overall, global comparable sales also increased by 4% year-on-year.
Total revenue rose 6% from $9.3 billion to $9.9 billion, compared to the same period in 2024.
However, pre-tax profit fell from $1 billion to $764.8 million. Starbucks said that profits were impacted by "labor investments" in support of its turnaround strategy.
It also pointed to "inflationary pressures, primarily tariffs and increased coffee prices."
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