(Reuters) - Starbucks (NASDAQ:SBUX) said on Wednesday incoming CEO Brian Niccol was eligible for annual equity awards worth $23 million and would receive additional stock grants of $75 million for giving up his shares in Chipotle Mexican Grill (NYSE:CMG).
Niccol's initial annual base salary will be $1.6 million, Starbucks said in a filing. He will also receive a cash signing bonus of $10 million.
Niccol, who has been Chipotle's CEO since March 2018, was instrumental in fixing the restaurant chain's reputation after a series of food safety issues. He has also focused on improving the burrito chain's digital and mobile ordering platforms to boost efficiency.
Starbucks is banking on that experience as he becomes the company's sixth CEO, replacing Laxman Narasimhan, who stepped down on Aug. 13 after taking over the top job in March 2023.
Narasimhan's tenure was marred by increasing pressure from activist investor Elliott Investment Management to turn the company around as it grappled with growing competition from nimbler rivals and weak demand in the U.S. and China.
Starbucks shares had shed nearly 25% of their value during Narasimhan's tenure as the top boss.
Narasimhan's total compensation was worth $14.6 million last year, compared with $8.8 million in 2022, according to a regulatory filing in January.
Niccol's compensation at Chipotle was $22.5 million for 2023, compared with $17.2 million in 2022, a filing showed in April.
Under Niccol's stewardship, Chipotle doubled its sales over the last five years, while its stock more than tripled. (This August 14 story has been corrected to read 'burrito chain' from 'coffee chain', in paragraph 3)