Starbucks' new CEO will start life at the coffee giant with a pay packet that could be worth over $28 million
Stephen Brashear/AP
- Laxman Narasimhan just started as CEO of Starbucks, and he's set to take home a hefty paycheck.
- This includes annual equity awards with a target value of $13.6 million, SEC filings show.
- Narasimhan, who is new to the coffee industry, joins amid a huge union drive at Starbucks.
Laxman Narasimhan started his tenure as CEO of Starbucks on Monday, nearly two weeks earlier than planned.
He's set to take home a hefty paycheck from his role.
According to Securities and Exchange Commission filings from September, Narasimhan will start with a base salary of $1.3 million per year.
He'll also have an annual cash incentive opportunity with a target of 200% of his base salary, or $2.6 million, and a maximum payout of 400% of his base salary, or $5.2 million. Starbucks says he'll also be eligible for annual equity awards with a target value of $13.6 million.
In addition, upon starting the job, Narasimhan is also set to receive a $1.6 million cash signing bonus as well as a replacement equity grant with a target value of $9.25 million, made up of performance-based and time-based restricted stock units.
In total, Narasimhan's pay packet could equate to over $28 million.
Narasimhan is required to relocate to Seattle for the job, for which he can be reimbursed for some expenses, Starbucks said. The coffee chain also wrote in the filing that Narasimhan would be able to use company aircraft for business-related travel.
When Kevin Johnson resigned as Starbucks CEO in April 2022, former boss Howard Schultz was named as his interim replacement. Narasimhan was named as the permanent CEO last September, with a planned start date of April 1.
His start comes amid a huge union drive at Starbucks, with workers at nearly 300 US stores voting to unionize. Workers and the National Labor Relations Board have accused the chain of union busting.
Narasimhan took on the role at Starbucks after serving for three years as CEO of British consumer goods company Reckitt Benckiser Group, which makes brands including Lysol and Durex. He has also held various leadership roles at PepsiCo and spent nearly two decades at McKinsey & Company. Narasimhan is new to the coffee industry.
In a statement in September, Schultz spoke of Narasimhan's "partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets."