Sen. Bernie Sanders (I-VT) is calling out Starbucks over what he sees as extreme corporate greed.
He posted on X last week: “Starbucks paid its new CEO $96 million for just four months of work. In four years, it has failed to sign a contract with nearly 12,000 of its union workers. This is what corporate greed is all about. I stand with Starbucks workers.”
Sanders’ comment followed reports that Starbucks awarded its new CEO, Brian Niccol, roughly $96 million in compensation after just four months on the job.
About 94% of that came in the form of stock awards, mostly tied to performance goals, according to corporate filings. The remaining shares will vest over time. Niccol also received a $5 million sign-on bonus just a month after starting.
Niccol, the former CEO of Chipotle Mexican Grill, was brought in to turn Starbucks around after the company saw slipping sales. Starbucks didn’t require him to move to its Seattle headquarters and agreed to cover housing expenses and private jet use.
Those perks added up to more than $143,000 for housing, $72,000 for flights between his home in Southern California and Seattle, and about $19,000 for other personal use of the company jet, according to Fortune.
Bloomberg estimates his full pay package is valued at $113 million, placing him among the top 20 highest-paid CEOs in the U.S.
Ongoing Union Struggles
Meanwhile, Starbucks continues to face national strikes and criticism from labor advocates.
Thousands of Starbucks employees have joined in an open-ended Unfair Labor Practices (ULP) strike, which the union describes as the largest and longest unfair labor practices strike in company history.
Workers are demanding fair contracts, predictable schedules, better staffing, and higher pay.
According to the union, Starbucks has stalled collective bargaining for nearly a year while engaging in alleged union-busting efforts.
Political Leaders Show Support
Several progressive politicians have spoken out in support of the striking workers.
New York City Mayor-elect Zohran Mamdani announced his personal boycott of the company. “While workers are on strike, I won’t be buying any Starbucks, and I’m asking you to join us,” he wrote. “Together, we can send a powerful message: No contract, no coffee.”
Rep. Alexandria Ocasio-Cortez (D-NY) also shared her support, writing: “Starbucks employees have long fought against consistently unpredictable schedules, short staffing, low pay, and unfair labor practices. Today, @SBWorkersUnited is striking to demand progress in stalled negotiations. Solidarity.”
Public Reaction and Business Trends
Despite growing public backlash, the company saw a short-term boost in traffic tied to its “Bearista” promotional cup.
According to Restaurant Business Magazine editor-in-chief Jonathan Maze, foot traffic surged 38% on the release day of the new cup. Starbucks also said its Red Cup Day sales were on track to beat expectations.
Still, the company’s stock dipped slightly, closing at $86.44 on Nov. 28, with a further drop in after-hours trading.
Benzinga’s Edge Stock Rankings currently score Starbucks poorly across multiple metrics, though the short-term trend remains positive.
A Divided Image
The contrast between Starbucks’ massive payout to Niccol and its ongoing labor disputes has reignited criticism of corporate priorities.
Sanders’ post added fuel to an already tense moment between Starbucks and labor groups.
Critics say the company is handing out huge paydays to top executives while ignoring the needs of the workers who run the stores every day.
While Starbucks defends the compensation as necessary to recruit a “highly sought-after, effective leader,” critics point to the unresolved union contracts as a glaring example of misplaced priorities.
The message from labor supporters is simple: if Starbucks has the money to pay a CEO $96 million, it should be able to reach a fair deal with its workers.
IMAGE CREDIT: “Bernie Sanders” by Jackson Lanier, via Wikimedia Commons. Licensed under CC BY-SA 4.0. Image adjusted for layout.