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In the midst of the company's longest ever strike, Sen. Bernie Sanders has taken aim at the Starbucks management over its executive pay levels, in particular that of CEO, Brian Niccol.
Niccol made $95.8 million in 2024, while the average barista made just $14,674, representing a ratio of 6,666-to-1, the largest CEO-to-worker pay gap among S&P 500 companies, according to a new report from the Institute for Policy Studies.
While Niccol ranked fourth in CEO compensation last year, the coffeehouse chain’s employees earned less on average than all but two S&P 500 firms. In fact, $14,674 is almost $1,000 less than the federal poverty level for an individual in 2025.
Niccol’s base salary is $1.6million, and he earned just $61,538 in salary during his roughly four months on the job in 2024, according to a Starbucks proxy statement. He also received a $5million bonus after a month at the company.
Starbucks 'corporate greed' accusations
Senator Sanders' criticism of Niccol, comes as Starbucks Workers United voted to widen an indefinite strike to120 stores across 85 US cities, asking for better pay, improved staffing and schedules, and action on hundreds of alleged labor violations. "This is what corporate greed is all about," he said.
The walkout was timed to coincide with Red Cup Day and Black Friday to achieve maximum effect and publicity, and is the longest labor stoppage in the firm's history.
Starbucks says it is ready to negotiate
Starbucks said 99% of its US locations remain open despite the walkouts, and insisted the strike would not cause any significant disruption. A company spokesperson said Starbucks is prepared to resume negotiations whenever the union returns to the table.
Workers united, which represents over 11,000 baristas at about 550 stores, says talks have stalled for months, with delegates rejecting a Starbucks proposal earlier this year that included annual wage increases.
Senator Sanders said that Starbucks has failed for nearly four years to finalize a contract with the thousands of baristas who voted to unionize.
Overall net revenue rose 5% from a year earlier, while global comparable store sales increased 1%, supported by a 1% uptick in customer transactions.
Starbucks' stock shows a negative trend over the medium and long term, as investors remain cautious amid the escalating labor disputes.
