Starbucks Allows CEO To Use Jet For Personal Purposes Citing Security Concerns

• Previously, the CEO had to reimburse for his personal non-commuting usage once such usage reached $250,000 per year. 
• The study highlighted “significant heightened security concerns, which included the existence of credible threat actors” and “enhanced media attention” on the CEO and the company. 
• The coffee company is slated to report its first-quarter results on Wednesday morning.

Starbucks Corp. (SBUX) CEO Brian Niccol can now use the company’s jet for both business and personal trips, and it would all be reimbursed by the coffee company.

Previously, the CEO had to reimburse for his personal non-commuting usage once such usage reached $250,000 per year.

The company said in a filing that its board approved replacing such an annual limit in September 2025 following a security study that recommended that the CEO use company aircraft for all air travel, including personal ones.

Rationale

The CEO’s flights will now be reviewed by the compensation committee and the board’s lead independent director on a quarterly basis, the filing said.

“This change was driven by the security study’s recommendation that Mr. Niccol use Company aircraft for all air travel, including personal travel, and the Company’s ongoing monitoring of Mr. Niccol’s security situation,” the filing read.

It also noted that the CEO did not give the company any dollars in fiscal year 2025 pertaining to the agreement with the company jet.

Security Concerns

The security study that sparked the change was conducted by a global risk management and security consulting firm. The study highlighted “significant heightened security concerns, which included the existence of credible threat actors” and “enhanced media attention” on the CEO and the company.

The study also recommended implementing additional security measures for the CEO’s travel in “elevated-risk destinations,” including dedicated car and driver service for ground transportation in Seattle, “given the profile of Starbucks and Mr. Niccol in the Seattle community.”

Starbucks is facing significant trouble in its Seattle hometown, marked by the closure of high-profile locations like the Capitol Hill Reserve Roastery and a Sodo Reserve store as part of a $1 billion restructuring effort from the CEO to address falling sales.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SBUX stock rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours while message volume remained at ‘high’ levels.

A Stocktwits user flagged concerns at the company, including falling revenue, faltering demand and the CEO’s high pay.

The company is slated to report its first-quarter results on Wednesday morning. Guggenheim analyst Gregory Francfort raised the firm's price target on Starbucks to $90 from $88 ahead of the earnings, while Wells Fargo raised the price target to $105 from $100 on likely strong comparable sales.

SBUX stock has dropped 4% over the past 12 months. 

Also See: JNJ Stock Rises On Fresh FDA Approval For Multiple Myeloma Drug

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