Chipotle Mexican Grill, Inc. CMG announced Monday that Scott Boatwright, who served as interim CEO since August, will permanently lead the fast-casual restaurant chain with a compensation package valued less than half of his predecessor’s pay.
What Happened: Boatwright, 52, who served as interim CEO since August, will receive a total package valued at approximately $11 million – a significant increase from his previous $6.3 million compensation as chief operating officer but substantially lower than his predecessor’s earnings, according to Fortune’s valuation.
The package includes a $1 million base salary, a potential cash bonus of $1.2 million, an $8 million retention grant, and a $3.5 million restricted stock award, plus a $200,000 aircraft allowance.
In contrast, former CEO Brian Niccol‘s 2023 compensation reached $22.5 million before his departure to Starbucks. Niccol’s new position came with a lucrative $113 million package, including a $10 million sign-on bonus and $75 million in equity grants.
“We conducted a thorough and rigorous external search process that confirmed Scott is absolutely the best person to lead the next stage of growth at Chipotle,” board chair Scott Maw said in a statement.
See Also: Greg Brockman Returns To Work At ChatGPT’s Parent Company: ‘Back To Building OpenAI’
Why It Matters: When asked about the compensation details, a Chipotle spokesperson told Fortune: “The bulk of Scott’s compensation will be received through his equity awards, and the actual value Scott will receive is entirely dependent on achievement of the performance goals for the awards and the stock price at the time of vesting.”
The appointment comes amid broader leadership changes at Chipotle, including the elevation of Jack Hartung to president of strategy, finance, and supply chain. The company issued retention grants totaling $34.5 million to key executives to ensure stability during the transition, according to Fortune.
Price Action: Chipotle’s stock has risen nearly 35% year to date, currently trading at $60.49. Under Niccol’s tenure, the company’s share price grew 800%, according to Benziga Pro data.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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