Starbucks Corp. (NASDAQ:SBUX) is tightening the protective bubble around its CEO and loosening the rules on who pays for it.
The coffee giant has removed limits on Chief Executive Officer Brian Niccol‘s use of the company’s private jet, mandating that he fly exclusively on corporate aircraft for all travel, including personal trips, after a board-ordered security review. Under the revised policy, Niccol no longer has to reimburse Starbucks for non-business flights, reversing a prior arrangement that capped company-covered personal travel at $250,000 a year.
The decision follows what Starbucks described as “enhanced media attention” and a tougher security environment. A company filing earlier this week referenced the presence of “credible threat actors,” prompting the board to step up protections.
The move places Starbucks among a growing list of U.S. companies reassessing executive security after the fatal shooting of UnitedHealth executive Brian Thompson in late 2024.
In recent years, Starbucks has faced employee strikes, consumer boycotts, and customer backlash over high prices, as well as turmoil in its leadership ranks.
Starbucks Q1 Earnings Snapshot
For the fiscal first quarter ended Dec. 28, Starbucks on Wednesday reported adjusted earnings per share of 56 cents on revenues of $9.92 billion. Wall Street had projected quarterly earnings of 59 cents per share on revenue of $9.73 billion.
The company said comparable store sales — key performance indicator — grew by 4%.
For fiscal year 2026, the company expects global and U.S. comparable store sales growth of 3% or greater, with consolidated net revenues growing at a similar rate and adjusted EPS in the range of $2.15 to $2.40.
Niccol’s Annual Paycheck Drops As Stock Lags
The costs add up. In fiscal 2025, Niccol’s jet use cost Starbucks nearly $1 million, while total security expenses reached over $1.1 million, including personal driver services. The company also covered more than $370,000 in temporary housing costs for the CEO, a portion of which was related to taxes.
Those disclosures arrived alongside details of Niccol’s latest pay package. The Starbucks chief earned $31 million in fiscal 2025, sharply lower than the $96 million he received the year prior, when a massive stock award helped lure him from Chipotle Mexican Grill (NYSE:CMG). Last year’s compensation included a $5 million bonus and nearly $20 million in stock awards, partly tied to company performance.
Niccol has been tasked with reviving growth under his “Back to Starbucks” turnaround plan, as shares fell 7.7% in 2025 — the stock’s fourth straight annual decline.
Price Action: SBUX stock was trading 5.81% higher at $101.28 in premarket trading on Wednesday. It has gained 2.2% over the last six months, and about 14% so far this year.
Benzinga’s Edge Stock Rankings indicate that SBUX maintains a strong price trend over the short, medium, and long terms with a poor value ranking.
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