Starbucks CEO Swap Involved Numerous Pay Instruments—Agenda

Starbucks’ recruitment of CEO Brian Niccol from Chipotle involved executive compensation instruments that amounted to total pay in the 50th to 75th percentile among comparable companies, says Farient COO and Partner RJ Bannister in this Agenda article. The result could be a “ripple effect” across the CEO talent market, as companies struggling with share value look to those which are surging to find replace their chief executives. Starbucks’ sudden move (and Niccol’s equally sudden departure from Chipotle) also highlights the fiercely competitive nature of the CEO talent market and the need for boards to be thinking proactively, says Bannister. “Many companies are taking a step back and saying, ‘It’s not just succession planning; it’s really talent development, and we need to be thinking five to 10 years ahead.'”

About R.J. Bannister

Partner, COO, Farient Advisors/GECN Group, New York

New York: (646) 626-6929
Mobile: (917) 747-3985
rj.bannister@farient.com

R.J. has 30-plus years of experience consulting to the S&P 1500 and large private companies representing the board’s compensation committee or management, and sometimes both parties. R.J. has worked with hundreds of companies on their total rewards strategy and executive compensation philosophy to align pay programs with business strategy. His ability to create alignment results from deep insights on industry and compensation trends; sophisticated financial, market, and compensation analytics; and impactful, easy-to-implement solutions. He has worked in nearly every industry sector and extensively with private equity companies. Before joining Farient, R.J. was the founder and CEO of Bannister Group LLC, an executive compensation and total rewards consultancy he founded in 2019 after retiring as a managing director from Willis Towers Watson. R.J. holds an MSc in economics from the London School of Economics and a BS in economics from the University of Pennsylvania’s Wharton School with a triple concentration in corporate finance, strategic management, and international political science.

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