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Starbucks grants new CEO private‑jet perk amid Seattle security concerns

Financial Times Companies •
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Starbucks disclosed that newly appointed CEO Brian Niccol will receive a satellite office in Los Angeles and a private‑jet commute allowance, a perk carried over from former chief Laxman Narasimhan. The arrangement follows a third‑party security review that deemed “enhanced personal security measures” necessary for Niccol’s safety while operating out of Seattle’s headquarters, joining a broader trend of U.S. firms expanding executive protection packages.

Investors note that such location‑specific security benefits are rare among U.S. public firms, which typically limit executive protection to private‑flight travel. The FT’s proxy review flagged the perk as “grandfathered,” implying the board views Seattle’s labor climate—fraught with union organizing—as a heightened risk zone for top executives, raising governance questions. The move also highlights Seattle’s growing reputation as a flashpoint for corporate‑labor confrontations.

Analysts argue the expense—estimated at several hundred thousand dollars annually—does little to alter Starbucks’ cost structure but signals a willingness to absorb non‑core items to retain leadership continuity. By publicly documenting the perk, the company invites comparison with peers and may face heightened scrutiny from activist shareholders demanding tighter compensation oversight across the sector.