CEO Pay. We got to get to the money and recently I told you all that the Starbucks CEO, the new CEO of Starbucks recently left Chipotle. So Chipotle had been turned around, their fortunes are turned around, but they’re experiencing over 18% increase in sales even though other fast food joints and places like that are absolutely reeling, right? And so the thing that I was more concerned with and that I was trying to figure out was, what are they paying this guy? Because you know how much money that you have to pay somebody to leave a position like that, that they already turned around a company and that they’re ultimately trying to get you to do the same thing to Starbucks and so the money got to be crazy.

The money has to be crazy, but it’s not exactly what you think and I notice some people that’s gonna be like, oh my God, that’s crazy, but it’s not exactly what you think and I’m gonna tell you why. Make sure I hit a like for the algorithm, subscribe to the channel and turn on your notifications, alright? Okay, let’s go back. Let’s get that again. I want y’all to hear it. I don’t want y’all to miss that. And CEO base pay $1.6 million. It’s not a lot of money considering executive compensation, but it is exactly what it’s supposed to be because the base pay, the base pay of most CEOs are not crazy excessive.

Let me say that again for the people in the back. The base pay for CEOs are not the not the total compensation package. I want y’all to follow me along here. The base pay is not overly egregious for any CEO because they understand, unlike all of these athletes, unlike all of these rappers, unlike all of these people that want to be CEO of a company, regular label. They understand that the way that they need to structure their deal when you get what you negotiate, not what you feel like you owe, you get what you negotiate, not what you feel like you deserve, the way that they structure their deals is that they want to tie their success into the success of the company.

And so it works both ways. If the shareholders are successful and the company continues to grow and they run up a bag, then they then get the bag to go along with it. So the base pay is just to keep you afloat. It’s the money that you allow in order to ensure that you can operate on a day-to-day basis with whatever your normal compensation is or whatever your regular lifestyle is. That’s not what they work for. They work for the bonuses and they work for the equity payouts. They work for the bonuses and the equity payouts.

Let’s continue. Equity grants of up to $23 million. There is also a $10 million cash signing bonus for the position. So you’re looking at up to $34 million in year one for 2025. That would also seemingly account for some equity left on the table by his leaving Chipotle, although we’re not sure how much that would amount to. And then separately, there is an equity grant of up to $75 million. Now that is a big number, but it does vest over a three to four year period and is dependent on both company performance and his tenure length for the schedule.

So base pay was a 1.3 or 1.6. Total compensation, $113 million, depending on how well the company do. Let me say that again for the people in the back. Base pay, 1.6. Total compensation, based off of how they’re breaking this down, $10 million signing bonus, you can earn up to $24 million in 2025 depending on the performance of the company. So if you raise sales, and we don’t know exactly what all of the details are, but if you raise sales and all of this stuff, and I’ll try to find out all of the details in it.

But if you raise sales and profitability and stores and all of this stuff, probably get more franchisees and expand their footprint, maybe over in Europe or something like that, then you can earn up to in one year, up to $24 million. Total compensation, based off of equity in the performance and targets, meaning that if you hit every single target, then the total compensation of this could be about $113 million, and he could be one of the highest paid CEOs in the world. But it’s all dependent on the performance of the company. If the company goes absolute trash, then that means that he only gets the $13 million total.

$11 million, $11.6, which is not shabby, but $11.6 is much different than $113, but here’s the beautiful part about it. So the $75 million placement equity grant is basically stock into the company, which doesn’t allow for you to sell the stock, depending on what your performance is, over a period of years. Well, what does that mean? Well, it also means that you get to defer the amount of money that you got to pay in taxes, that’s A. But it also, on top of that, means that your total compensation could be even more than that, because the performance of the company can go greater, so you have a vested interest.

This is how they incentivize CEOs to run certain companies. You got a vested interest in seeing this company be successful, and you’re not there just for the pay, because in order for you to get these equity bonuses, you got to do your job, and you got to do it incredible. You got to do an incredible job, and if you do an incredible job, and the shareholders are getting, people say, well, why would these companies pay so much money to these CEOs? Because everybody benefits. Because if you do great, and you hit all of these price targets, and you raise the valuation of the stock, and you expand the store footprint, and you increase sales, and you reach the consumers, and all of this other type of stuff, well, guess what? Me as a shareholder, I win big, and you win big, too.

And so that’s the difference between executive compensation, and compensation for regular, everyday people, is that their performance or their success is tied to the success of the company. You want to get paid either way. Hey, as long as my check is here, every two weeks, nah, I want mine to be directly tied to the performance of the company, because I know how good I am, and I know that I’m going to turn this company around, and I know we’re going to run it up, and I know I’m going to increase the stock price. That’s the difference.

Just for context at Chipotle, last year, for filings, he made just over $22.4 million, and his base pay was a little lower, I believe, around $1.3 million. In his statement, Starbucks said, quote, Brian Nicol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years. His compensation at Starbucks is tied directly to the company’s performance and the shared success of all of our stakeholders. We’re confident in his ability to deliver long-term, enduring value for our partners, customers, and shareholders. So let me also add this in there, too.

Part of his negotiation, and this is why it pays to be in a position of power when you then get a position or, you know, you’re being offered something. When you’re operating in a position of power, you can basically bend the company to your will. Starbucks is letting its incoming CEO essentially work from home. But this is Starbucks, so I was kind of shocked. So, interestingly, he’s not relocating from California, but he will be working out of Seattle. So part of it is going to be commuting regularly. But the terms are kind of unclear. I don’t know how often he’s going to be in Seattle, even though they’re saying that will be his main office.

Yeah, exactly. And apparently he will be commuting to Seattle and travel as needed. That as needed leaves a lot to the imagination. As you said, we don’t have the details yet. That’s an awful lot of flexibilities that we know that we know most companies aren’t offering to their rank and file employees. Absolutely. And I think it shows how much Starbucks really wanted to get Nicole to join the company. I think it was one of a couple of concessions they made. And interestingly, when he joined Chipotle, Chipotle was willing to relocate the entire company headquarters for him to California from Denver.

So I think it’s just one of those aspects. If you’re that desirable, you can kind of make whatever arrangement you want. When you the man and you the person that’s at the helm and you get into the bag and you that dog and you actually can deliver results and you got a track record of delivering results, they will relocate the entire headquarters for you. I’ve never in my life, never in my life actually heard of a CEO of a company being able to work from home. Never in my life have I ever heard of a CEO being able to work from home.

But basically he said, listen, I’m not uprooting my family. I’m not going nowhere. And because y’all want me because y’all came calling me. Not only am I going to negotiate this pay package to be excessive and crazy, but I’m also going to make sure that I stay working from where I work at. And then make sure that you get me to private jet to be able to travel where it is that I need to travel to in order to take care of business when it’s when it’s convenient. I ain’t tripping off of them. I hate Maddie at all.

And then people will sit there and tell you and this is this is the biggest thing that I want to emphasize in this. And then we’re going to go ahead and wrap it up. People will sit here and tell you start your own company. And that’s cool too. I ain’t tripping off that. It don’t pay to work in corporate America. I’m not telling you that you can wind up becoming, you know, him and wind up becoming a CEO of a Chipotle and in Portland and over there to Starbucks. What I am telling you is that most people that say that type of stuff, they have no clue what they’re talking about.

They have no clue the amount of money that’s available in the C-suite or when you work up and you get these equity bonuses. They have no clue the amount of money that some of these people are making. And because they operate out of ignorance, it’s so easy for them to finesse you and tell you to go out and do some dumb stuff. I’m telling you that there’s money everywhere. There’s money everywhere. It’s all around you. It’s money in corporate. It’s money in businesses. It’s money in everything. And so the thing that you have to realize and this is this is what we stand on here on the Millionaire Morning Show.

When people ask me is what are bag chasers? I say that bag chasers are people that’s ultimately chasing the best thing for them, understanding that the money comes along with it. But more importantly, you have to understand where it comes back down to the money and that’s what we stand on on the Millionaire Morning Show. I love you. I appreciate you. I think that you guys are the greatest on earth. [tr:trw].

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