Securing a remote or hybrid office job has become increasingly challenging, with one notable exception.
Why it matters: CEOs have more flexibility.
What's happening: The incoming Starbucks CEO, Brian Niccol, does not need to move from his home in Newport Beach, California, to the company's headquarters in Seattle.
State of play: According to Niccol's CEO offer letter, publicly disclosed in an SEC filing this week, he is expected to commute to Seattle as needed to fulfill his duties. Starbucks will provide him with a remote office in Newport Beach and an assistant of his choosing.
The intrigue: Starbucks' white-collar workers, or "support center-based employees" as termed by the company, do not enjoy the same freedom. Last year, Starbucks enforced stricter work-from-home policies, mandating that employees living within an hour of the office must commute in at least three days a week. Despite initial resistance, the policy was implemented.
Niccol's predecessor, Laxman Narasimhan, had to relocate when he was hired in 2022, moving from London, a distance too far for frequent trips to the U.S. West Coast.
The big picture: Bloomberg reports that remote work is becoming more common for CEOs. The new CEO of Victoria's Secret, Hillary Super, will not move to the company's Ohio headquarters and will instead travel from her home in New York. Anecdotal evidence, noted by Harvard Business School professor Raj Choudhury, suggests many CEOs are embracing a "work from anywhere" model, although comprehensive data is lacking. He believes the shift to remote work for CEOs is commendable, and the next step would be offering similar flexibility to other employees.
Flashback: CEOs and executives have been working remotely long before the pandemic, often with negative outcomes. Former Sears CEO Eddie Lampert, criticized for living in Florida instead of near the company's Illinois headquarters, faced significant challenges. Similarly, over a decade ago, Ron Johnson was called out for not relocating closer to JCPenney’s headquarters during his attempt to reform the retailer.
For the record: According to Starbucks spokesperson Andrew Trull, Niccol is expected to acquire some residence in Seattle. When not traveling for work, he will spend at least three days a week at the Seattle office, consistent with Starbucks' hybrid work policy. While Niccol will have an office in Southern California, his primary office and most of his time will be at Starbucks' Seattle headquarters, Trull said.
The bottom line: It's advantageous to be in a top position.