Starbucks Removes $250K Annual Cap on CEO's Private Jet Use
In a significant policy shift, Starbucks Corp. has mandated that Chief Executive Officer Brian Niccol must utilize the company's private aircraft for all travel, both professional and personal. The coffee giant has simultaneously eliminated a previous restriction that required Niccol to reimburse the company for personal travel expenses exceeding an annual cap of US$250,000.
Enhanced Security Measures Following Threat Assessment
The decision stems from a comprehensive security review conducted by Starbucks' board of directors. According to a recent corporate filing, the board cited "enhanced media attention" and "the current threat landscape" as key factors. The security study identified "the existence of credible threat actors," prompting the board to enhance protective measures for the CEO.
A company spokesperson stated: "Following a security review of risks, the Starbucks board of directors made the decision to enhance security measures for Brian. This included a decision by the board to require Brian to use private aircraft for all travel."
Financial Implications and Corporate Governance Changes
Under the revised travel agreement, Niccol is no longer obligated to reimburse Starbucks for non-professional use of the corporate jet. Previously, he would have been responsible for personal travel charges exceeding the US$250,000 annual threshold.
The corporate filing reveals substantial security-related expenditures:
- Niccol's total security costs reached US$1.1 million in fiscal 2025
- Private jet usage cost the company just under US$1 million during the same period
- Starbucks provided personal driver services at no charge to the CEO
- Temporary housing expenses exceeded US$370,000, including approximately US$244,000 in tax-related costs
Notably, the board will now review Niccol's travel arrangements on a quarterly basis rather than annually, reflecting increased oversight of executive security protocols.
Broader Trend in Executive Protection
This move aligns with a growing trend among U.S. corporations to bolster executive security following the fatal shooting of UnitedHealthcare CEO Brian Thompson in Manhattan in late 2024. Many companies are implementing more stringent protective measures in response to heightened security concerns.
Courtney Yu, director of research at executive pay consultant Equilar, observed: "Since the shooting of the UnitedHealthcare CEO, we've seen many companies shift their security policies, including installing home security and requiring CEOs to use the corporate jet for all air travel."
The policy change comes as Starbucks prepares to report first-quarter financial results, with investors closely watching how the company balances executive protection with shareholder interests in an increasingly security-conscious corporate environment.
