Starbucks new CEO's controversy

I still don’t know why I’m getting into this… but it’s been ringing inside my head these past few weeks, and I felt I should share it over here.

Lately, I have been reading several articles and watching hundreds of posts on social media talking about Starbucks’ controversy with their recently appointed CEO, Brian R. Niccol, former CEO and Chairman at Chipotle Mexican Grill. Needless to say, that none of them were either well informed or even understand how big corporations work, especially those in the U.S.A.

I would like to start mentioning that this is my humble opinion based on a quick search (where I found all info, including his formal contract, released under the US Securities and Exchange Commission's disclosure laws) and some experience working on multinational companies for the past 10 years. Also, let’s take into consideration that every company have their own rules, so we cannot compare pears with apples. Having said this, yes… Starbucks has a huge internal workplace reputational issue based on the fact that employees will never understand the Board’ decision and why are they forced to come to work to the office 3 days a week, while their CEO stays at home. But let’s start from the beginning.

C-suite executives, overall, those related to Sales and Chairman positions, don’t really have a quiet and stable life in terms of spending time in the office or in their own city, nor even in their countries if the role has an international scope. So, we should expect Starbucks’ CEO to spend -at least- over 60% of his time travelling to meet clients, partners and suppliers, or even visiting international offices. I’m not an expert, but I believe the company made the numbers and it would be cheaper to give him a private charter rather than putting him on first-class or Business seats every week (hoping it’s not every day).

On top of this, Starbucks came from a not-so well financial situation and they needed someone who could help them rise again. And so, they found a profile like Brian’s who rocketed his former company’s numbers under the same role. So, it’s a no brainer that -if Starbucks were in any type of desperate situation and this ‘guy’ (allow me this closeness) was the best option- he could have negotiated whatever he wanted. In fact, I really think staying at his home place with his family, for any personal reason, is not a bad thing, acknowledging he will pay for that with tedious travelling and meetings across the country. But for that amount of money, and to avoid moving to Seattle (‘Seattlers’, please don’t hate me), I believe it’s a smart move.

Nevertheless, the key topic in the media has been led by the green activists, whether it’s sustainable or not to take a private jet to commute to the office. Please, grab a coffee (Starbucks or others if you prefer) and keep reading. Let’s remember that as a CEO he will be on the road (in the air in this case) every week for several days to meet clients and other stuff, so his potential carbon emissions would be already a fact as part of his normal activity, not to this specific new commute.

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The real issue with employees

Now, this is fun part. Even though he can negotiate whatever he wants as the new CEO, and this includes avoiding weekly commute (which is not included in his contract), the company still needs to communicate internally to their employees why he is an exception. But, seriously? Do you think Starbucks is the only company doing so? Every company, including my current employer, has tons of exceptions based on individual cases, and the rest of employees still need to understand that everyone is different. So, if you don’t like it, you are free to leave.

Given this, the company has now an internal engagement issue that includes employees posting on social media their disagreement because they don’t understand the real scope of work and duties attached to their CEO’s daily activity, and the fact that -sometimes- people can negotiate and win. Maybe, a “day in a life of Starbucks’ new CEO” video could help educating these audiences while also explaining externally that, yes… he has a private jet, but also, yes… he really needs it. ?

Again, this is just my thoughts on this crazy situation where green activism and workplace issues collide on sensationalist stories.

Jaime Negredo

Image: by @livemint