Starbucks’ $130 Million CEO Switch Shows Cost of C-Suite Ouster

When Starbucks Corp. tapped Brian Niccol as chief executive officer in 2024, it cited the “critical need for a transformative leader” in justifying the hire. If performance significantly improves, the corner-office switch could cost the company $130 million.

That figure includes estimated exit payments to outgoing CEO Laxman Narasimhan as well as so-called “make whole” awards of cash and stock sufficient to entice Niccol to leave his job running Chipotle Mexican Grill Inc. Starbucks deemed the payments “necessary” to recruit Niccol. But some observers balked.

“The price of the transition is staggering,” concluded proxy-advisory firm Glass Lewis, in a February ...