On Sunday, August 11, Starbucks officially signed its new Chief Executive Officer (CEO), Brian Niccol. Starbucks made the offer letter public in a filing with the Securities and Exchange Commission (SEC) late last week. That filing states that Niccol will receive a base salary of $1.6 million, an annual cash bonus of between $3.6 million and $7.2 million, and the opportunity to redeem up to $23 million in annual stock awards. However, the offer letter filed with the SEC also has several other unique features, some of which are not typically seen for CEOs of large companies.

A look at the new working arrangements

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One feature of the new arrangement is that Niccol will not have to relocate to Starbucks headquarters, where previous CEOs have worked from. This means Niccol’s new job allows him to work as a hybrid employee. According to CNBC, Niccol will be able to work from his current home in Newport Beach, California. This means he will have to commute to Starbucks headquarters in Seattle, Washington, up to three days per week. A Starbucks spokesperson told Simple Flying that this is in direct line with the company’s hybrid work policy. This policy requires employees to be in the office at least three days per week unless the employee is traveling for work. While in Seattle, Starbucks will reimburse Niccol for lodging, creating another unique work arrangement, according to the SEC filing.

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The offer letter also states that Starbucks will be responsible for setting up a branch office for Niccol. This office will be operated by Starbucks and the company will also hire a personal assistant for Niccol when he works in Newport Beach.

However, if he’s not working in Newport Beach, Niccol will most likely be forced to commute from California to Seattle, Washington. That commute is just over 1,000 miles, meaning he’ll most likely be flying between the two locations. The offer letter also states that Niccol will be allowed to use the company-owned aircraft for business travel, travel between his residence and Starbucks headquarters, and additional personal travel valued at up to $250,000 per year.

In a statement to Simple Flying, a Starbucks spokesperson said:

“Starbucks maintains a corporate aircraft to ensure safe and timely business-related transportation for company executives. All travel must be conducted in accordance with applicable company travel policies.”

This unique arrangement means the new Starbucks CEO may have to commute 1,000 miles on the company jet to get to work several times a week. Let’s take a closer look at the two planes Starbucks currently owns that may be taking Niccol to work from his home in Newport Beach.

The two Starbucks corporate jets

According to JetSpy, two aircraft are registered to the Federal Aviation Administration (FAA) as owned by Starbucks Capital Asset Leasing Company LLC. This means that they are Starbucks-owned aircraft. These two aircraft are Gulfstream G550s and are registered as N721L and N721V.

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The older aircraft, N721L, was first manufactured in 2007 and has the serial number 5140, according to JetSpy. According to FlightAware, Starbucks has owned the registration of this aircraft since January 2017. This aircraft has made a total of 51 flights so far in 2024, totaling 191 flight hours. These flights have consumed over 80,000 gallons of jet fuel, resulting in over 800 tons of carbon emissions. According to JetSpy, the aircraft’s three most frequently flown airports are:

1. Boeing Field King County International Airport (BFI) in Seattle, Washington
2. Phoenix Mesa Gateway Airport (AZA) in Arizona
3. Philadelphia International Airport (PHL) in Pennsylvania

Starbucks’ newer aircraft, the N721V, was first delivered by Gulfstream in 2013. This aircraft has the serial number 5412. Starbucks Capital Asset Leasing Company LLC purchased this aircraft new and took delivery of it in January 2013, according to FlightAware. This aircraft is used a little less than the N721L, having only flown 46 times so far in 2024. However, those 46 flights have accumulated 201 flight hours. Those flight hours have consumed nearly 88,000 gallons of jet fuel, contributing to 841 tons of carbon emissions. According to JetSpy, the aircraft’s three most frequently flown airports are:

1. Boeing Field King County International Airport (BFI) in Seattle, Washington
2. London Luton Airport (LTN) in Bedrodshire, England
3. Chicago O’Hare International Airport (ORD) in Illinois

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About the Gulfstream G550

The G550 is one of Gulfstream’s most well-known business jets. The aircraft was originally developed in the early 2000s as a replacement for the Gulfstream V. However, Gulfstream has made several improvements to reduce drag and upgraded the engines to improve the aircraft’s fuel efficiency. These improvements also increase the maximum takeoff weight (MTOW) and improve takeoff performance.

Photo: Ryan Fletcher | Shutterstock

The first prototype flew for the first time in July 2002. The aircraft finally received its type certification from the Federal Aviation Administration (FAA) in August 2003. Gulfstream began delivering G550s later that year. Overall, the Gulfstream G550 has the following performance data:

The G550 is able to achieve these impressive performance figures thanks to its two powerful engines, Rolls-Royce BR710 turbofan engines, each delivering over 15,000 pounds of thrust. This gives the aircraft an impressive runway performance that includes a runway length of under 6,000 feet and a runway length of just over 2,750 feet.

In addition, the G550 has a modernized cabin that can accommodate a maximum of 19 passengers. Gulfstream has moved the cabin door further forward in the fuselage, allowing an additional window to be installed compared to the GV. In the cockpit, the G550 uses the Honeywell Primus Epic avionics system, which includes a head-up guidance system and an improved vision system.