Starbucks’ New CEO Will Commute 1000 Miles Instead of Relocating to Seattle. Why That’s a Setup For Failure

As a general rule, a CEO doesn’t spend most of their time in the office. A big part of the job is getting face time with the business beyond the people working in the “c-suite.” In that sense, it almost doesn’t matter where the CEO of a large company lives–technology has made it possible to do much of the job from almost anywhere. For example, Salesforce founder and CEO Marc Benioff once said that he could run the entire company from his iPhone. 

Of course, one of the most important jobs of a CEO is something you can’t just do from anywhere–building relationships with the people on your team. Leadership, it turns out, is all about influence, and influence is all about relationships. Building healthy relationships requires two things: proximity and trust. 

That’s why it seems strange that the new CEO of Starbucks, Brian Niccol, won’t be moving to Seattle, where the company is headquartered, but will instead super commute from his home in Newport Beach, California–over 1,000 miles away. That’s according to the offer letter the company’s board sent to Niccol, who is still the CEO of Chipotle for another few weeks.

For Niccol, it’s a pretty sweet deal. I can definitely understand why he would want to be able to continue living in his home. I hate moving as much as anyone, so I get it. Then again, I’m not a Fortune 500 CEO. 

Niccol must really hate moving because when he took over at Chipotle, the company was headquartered in Denver. Instead of relocating, the company moved its headquarters to him. I have to imagine that seems like a bummer now that the CEO is moving on.

I’m guessing Starbucks’ board thought getting their guy was worth it, and they think Niccol is their guy. His track record at Chipotle seems like what Starbucks’ board is looking for, so maybe the company was willing to do whatever it took to get him.

Well, almost whatever it takes. Starbucks isn’t likely to move. Its home in Seattle is so entrenched throughout its story and brand that there’s no way the company is moving its headquarters. It will, however, let Niccol open a small satellite office near his home staffed by an assistant of his choosing. 

Look, I get that the market for the types of people who can take on the CEO role at a company like Starbucks is small. I also understand that means companies sweeten the deal with various perks. Niccol’s deal includes using the company jet, stock incentives, and assistance with housing while he’s in Seattle. None of that is surprising. What is surprising is that anyone thinks it’s actually a good idea to have your brand new CEO commuting 1,000 miles each way.

According to Starbucks, Niccol’s arrangement will follow the company’s hybrid work plan, which requires employees to be in the office three days a week. I think hybrid work is great. As someone who has mostly worked remotely for years, I don’t think there’s any question that many types of work can be done as well, if not better, in a home office.

And, practically speaking, if you’re the CEO of Starbucks, you probably shouldn’t be sitting in your office five days a week anyway. Most of your job is going to be traveling to visit stores, partners, and suppliers, as well as generally representing the company in all kinds of public settings. But that’s not the same as traveling just to get to the office.

One reason it’s a problem is that, according to Starbucks’ website, the company’s environmental goal is to “give more than we take from the planet’s resources.” It seems challenging to “embed sustainability in every function and business unit around the world, so it becomes the way we run our business” when you’re using a corporate jet to ferry your CEO back and forth between Southern California and Seattle every week.

The bottom line is that if you’re Niccol, this isn’t a great look. Yes, there are other CEOs who commute long distances, and yes, I understand why companies are willing to put up with it to attract their top candidates. But, if you’re that candidate and you don’t recognize the message you’re sending, that’s a problem.

It doesn’t make you look committed to the task, which is a problem since it’s hard to ask your team to do hard things when it seems like you’re not all in. It’s also not a great look for Starbucks, which already has a culture problem. 

Many Starbucks employees already don’t trust the company. Many of them are trying to unionize the company’s cafes. If you’re the new CEO, every one of those employees will be watching you, and this doesn’t send a great signal. It’s bad for both proximity and trust. It turns out that–if you’re the CEO–where you live and work says a lot about what you value, and the people in your company are watching to find out whether it’s them.