Starbucks says incoming CEO Brian Niccol can live in his home in Newport Beach, California and commute to Starbucks’s head office in Seattle on a corporate jet.
I don't get why he'd do that. That's a nearly 3 hour commute each way, so about 5-6 hours in the air each day.
Add to that, a charter jet company quotes the price for that flight at ~$18,000 each way. Maybe reduce the cost of that flight in half, but the yearly bill for transportation alone is going to be in the range $25,000,000+ per year. No CEO is that valuable.
Add to that, a charter jet company quotes the price for that flight at ~$18,000 each way. Maybe reduce the cost of that flight in half, but the yearly bill for transportation alone is going to be in the range $25,000,000+ per year. No CEO is that valuable.
That is sort of like arguing that "no medieval Duke or Baron is that valuable." Guys as rich as him are part of the owning class. They live in a completely different world than the rest of us and most of those positions are decided by nepotism. The MBAs working under the C-suite do all the real work of managing the company while the C-suite types fly around the world, play golf, party on yachts, etc.
I don't get why he'd do that. That's a nearly 3 hour commute each way, so about 5-6 hours in the air each day.
Add to that, a charter jet company quotes the price for that flight at ~$18,000 each way. Maybe reduce the cost of that flight in half, but the yearly bill for transportation alone is going to be in the range $25,000,000+ per year. No CEO is that valuable.
Where does $25M come from? ~260 work days in a year, and using the full 18k each way, is a little under $10M: $18,000×2×260 = $9,360,000
Still a ridiculous transportation bill, of course...
Edit: I think you increased the 18k by a factor of two instead of decreased, and used all 360 days instead of weekdays: $18,000×2×2×360 =$25.92M
You're assuming he's going to the office everyday. He's going to work from home 4 days a week some weeks maybe all the 5 days.
That is sort of like arguing that "no medieval Duke or Baron is that valuable." Guys as rich as him are part of the owning class. They live in a completely different world than the rest of us and most of those positions are decided by nepotism. The MBAs working under the C-suite do all the real work of managing the company while the C-suite types fly around the world, play golf, party on yachts, etc.