Starbucks chief now gets company jet for personal – Business News
This week, Starbucks Coffee introduced that it could let its CEO, Brian Niccol, have free entry to the company jet for personal journeys as a security precaution. The transfer may drive different firms to do the identical for their executives.
“The assassination of the UnitedHealthcare executive has provided a unique opportunity to give boards air cover to capitulate to a CEO’s desire to travel on a private jet,” a board member of a publicly traded company who’s getting pushed to comply with Starbucks’ lead, instructed me.
The change got here after the company carried out a “security review of risks” and “the Starbucks Board of Directors made the decision to enhance security measures for Brian,” a spokesperson for the company stated. “This included a decision by the Board to require Brian to use private aircraft for all travel. With that requirement, the Board also determined that a quarterly review process provides more appropriate oversight.”
Starbucks CEO Brian Niccol can now use the company jet for even personal journey after the board decided it was obligatory for his security. REUTERS
According to an SEC submitting that went public earlier this week, the review recognized “credible threat actors” focusing on Niccol.
Starbucks eliminated a earlier $250,000 annual cap on personal jet use in September 2025. But sources are skeptical it was nearly addressing a security concern.
“It wasn’t like he was flying in coach and they were worried he was in danger,” one govt at a publicly traded company instructed me. “He was flying private for personal travel before — he clearly likes flying private … he just isn’t reimbursing the company anymore.”
Starbucks is persistently ranked one of the highest 150 firms by market capitalization within the US, with a more than $100 billion valuation. Niccol joined the company in Sept. 2024 and has labored to jolt slumping gross sales. For the quarter ending Dec. 28, US gross sales have been up 4%.
Brian Niccol was appointed CEO in Sept. 2024 and has labored to fight slumping gross sales. AP
The new coverage is a precedent for smaller firms to make related strikes — and it may in the end backfire.
“Private jet use quickly becomes part of the narrative of a bloated cost structure when investors are upset with how a company is performing,” the board member burdened to me. “The first thing they look at is perks because it’s easy to attack and a good soundbite that a company is spending too much money on personal travel.”
NYNext has reached out to Niccol for remark.
