He is the new CEO of Chipotle Scott Boatwrightfamiliar faces and names, indeed interim general manager following the surprise decision to take over from former director Brian Niccol from August back at Starbucks.
And while Boatwright, 52, will get a significant pay raise in his new corner-office role compared to his days as chief operating officer and restaurant manager, his compensation ranks well below former CEO Niccol’s rockstar salary.
Boatwright’s deal as CEO has not changed since the board’s compensation committee gave him a boost after he was appointed to the interim role. That included an $8 million grant after Niccol left keep Boatwright — and Chipotle’s entire executive management team — jumped ship. In addition to the grant, Boatwright’s interim CEO package announced in August included a $1 million base salary, a potential bonus of nearly $1.2 million, an additional $3.5 million worth of restricted stock and a $200,000 flight allowance . Boatwright’s potential maximum package could exceed $11 million if Chipotle’s stock price continues to perform, but the award could be higher based on the actual value of Chipotle’s stock when his awards are vested.
“We conducted a thorough and rigorous external search process that confirmed Scott is the best person to lead the next phase of growth at Chipotle,” said Scott Maw, chairman of the board. statement on monday “Today’s announcement is an affirmation of Scott’s leadership ability and our internal succession planning process. The Board believes Scott will deliver on the key strategies in place and position the company for continued success.”
The package is a significant upgrade from Boatwright’s previous composition as COO, which is appreciated 6.3 million dollars of the company in 2023 annual shareholder report. But it’s a far cry from Niccol’s 2023 salary, which was valued at $22.5 million, according to Chipotle disclosures. In a statement, a Chipotle spokeswoman declined to comment luckBoatwright’s Compensation Assessment. “The majority of Scott’s compensation will be received through his equity awards, and the actual value Scott will receive is entirely dependent on the achievement of performance goals and stock price for the awards,” they said.
Niccol presided over the burrito bowl giant from March 2018 to August 2024, an 800% increase in share prices and a nearly sevenfold rise in earnings, but then stepped down. Starbucks offered him a potential $113 million paid package to turn around the coffee chain. The bulk of Niccol’s package at Starbucks was distributed to supplement the salary he left at Chipotle, with a $10 million sign-on and $75 million equity grant.
COO year
Niccol’s departure shook Chipotle and led to a significant change in leadership at the chain, where Niccol served as the combination’s CEO and chairman of the board. In response, Chipotle’s board revamped its succession plan, accelerated several promotions within the C-suite and made a series of equity grants totaling $34.5 million designed to sustain the executive team while it searches for its next Niccol. .
Boatwright’s promotion from COO to CEO role is in line with trends in the S&P 500 and Russell 3000, according to one. analyze From the Conference Board. In 2024, a staggering 77% of S&P 500 CEOs were promoted from within, with the COO position being the most common starting point for the corner office, the study found. An extraordinary one analyze According to S&P 1500 CEO transitions by search firm Spencer Stuart, 57% of new CEOs were promoted to COO or president, up from 43% in 2022, making 2023 the “year of the CEO.”
As for the difference between Boatwright’s and Niccol’s salary, it’s not unexpected. On average, a new CEO is paid about 15% less than the predecessor — usually at a discount because they have less experience, the Conference Board study found. Companies in turmoil are likely to look outward for their next top leader and often pay dearly. Outsiders usually require very significant financial support to make up the stock accumulated in a previous position. On average, externally hired CEOs earn 33% more than internally grown ones, the study revealed.
At Chipotle, Niccol’s departure also shook the top ranks. Scott Maw was appointed as an independent board member to replace Niccol, a role he also fills with Boatwright’s promotion. Chipotle’s board also retained chief financial and administrative officer Jack Hartung, who retired on March 31, 2025 after 23 years in the CFO chair. Instead, the board appointed Hartung as president of strategy, finance and supply chain. The board awarded Hartung an $8 million retention grant, the same amount as Boatwright. Both awards have a two-year term; they are generally designed to keep executives in their seats at times when they can. The board also awarded $7 million in retention grants to chief customer and technology officer Curt Garner and chief brand officer Chris Brandt, the company said.
Chipotle accelerated the appointments of Adam Rymer as chief financial officer and Jamie McConnell as chief accounting and administrative officer until Oct. 1, and awarded both stock-based retention grants: Rymer’s was $3 million and McConnell’s was $1.5 million. Both were due to move into their roles on Jan. 1, 2025, according to a previous timeline that included Hartung’s retirement.
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