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New York City Mayor-elect Zohran Mamdani used a Starbucks Corp. (NASDAQ:SBUX) pay fight to draw a sharp contrast between executive wealth and barista wages this week, pointing to CEO Brian Niccol's nearly $95 million payday as workers strike for a first union contract and more predictable hours.
"Starbucks CEO Brian Niccol made $95 million last year. His workers are striking for the bare minimum. Glad to be on the right side of the picket line with them," Mamdani wrote on X on Tuesday.
Mamdani and Sen. Bernie Sanders (I-Vt.) joined Starbucks Workers United members on a Brooklyn picket line Monday, weeks into an open-ended walkout that began on Red Cup Day, one of the chain's busiest promotions. Sanders, on Friday, had highlighted the same pay disparity to argue that the company’s priorities were out of balance.
Speaking alongside striking baristas, Mamdani pledged that his incoming administration would back organizing campaigns and "hold these kinds of corporations accountable," according to HuffPost. He said he intends to keep joining picket lines after taking office Jan. 1 and to use the mayor's platform to spotlight labor violations.
The showdown comes on the heels of a record labor settlement. According to Reuters, on Monday, city officials announced Starbucks will pay $38.9 million to resolve more than 500,000 alleged violations of the Fair Workweek Law at over 300 locations, including last-minute schedule changes and cuts to hours without consent. Roughly $35.5 million will go to more than 15,000 workers, who are expected to receive checks as soon as this winter.
Niccol, recruited in 2024 to lead Starbucks' turnaround, received total compensation of about $95.8 million last year, a package analysts say produced one of the largest CEO-to-worker pay gaps in the S&P 500.
Price Action: Starbucks shares were up 0.34% at $85.20 at market close on Tuesday, according to Benzinga Pro data.
According to Benzinga Edge Stock Rankings, Starbucks scores in the 27th percentile for Momentum and 79th for Growth. Check here to see how it stacks up against competing restaurant stocks.
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Posted In: SBUX
