Starbucks has scrapped a $250,000 (£181,000) cap on its chief executive using the coffee chain company’s jet for personal travel due to concerns about his safety.
Brian Nicol uses the jet to travel about 1,000 miles (1,600 km) from his family’s home in Newport Beach, California, to the firm’s headquarters in Seattle.
Until September, his personal use of the aircraft was limited to an annual cap, after which he was required to reimburse the company.
But Starbucks dropped it after a security review recommended it be used for all air travel due to increased media attention and “credible threat actors.” The arrangement will now be reviewed every three months.
The decision comes as many U.S. companies are tightening executive security after UnitedHealthcare CEO Brian Thompson was killed last year.
Starbucks said a study by an independent third party “determined that enhanced personal security measures were necessary for the personal safety of Mr. Nichols”.
It said: “Given Mr. Nichol’s role as chief executive, the increased media attention to the matter between Mr. Nichol and Starbucks, and the current threat landscape, Mr. Nichol’s security study also recommends that Mr. Nichol use private aviation for all air travel, whether for personal, commuting or business purposes.”
Starbucks’ compensation committee recommended in September that Kapp be replaced by a quarterly review of his personal flights, which board members approved.
When Nicholl was announced as Starbuck’s new chief executive in the summer of 2024, replacing Laxman Narasimhan, he came under fire when it was revealed he would travel nearly 1,000 miles on the company’s aircraft.
Critics said there was a discrepancy between Starbucks’ public stance on green issues and the lifestyle of its top executives.
Nicole’s job offer said she was “not required to relocate to company headquarters”, but added: “You agree to travel from your residence to company headquarters … as necessary to carry out your duties and responsibilities”.
The document states that he will be eligible to use the company’s aircraft for “business-related travel” and “intermittent travel”. [his] City of Residence and Company Headquarters”.
Under the time-share agreement, he would reimburse Starbucks for personal use of the jet above a $250,000 annual cap.
Given the profile of Nichol’s and Starbucks in Seattle, a third party review recommended a “dedicated car and driver service for ground transportation” when traveling there.
