Chipotle’s new chief executive is Scott Boatwright, a familiar face and name, given that he’s served as the interim CEO since August following former CEO Brian Niccol’s surprise decision to lead a turnaround at Starbucks.
And while Boatwright, 52, will get a significant pay boost in his new corner-office role compared to his days as chief operating officer and chief restaurant officer, his comp is valued well below the rockstar pay of ex-CEO Niccol.
Boatwright’s deal as permanent CEO has not been changed since the board’s compensation committee gave him a boost when he was named to the interim position. That included an equity grant valued at $8 million he got after Niccol left in a bid to keep Boatwright—and the entire executive leadership team at Chipotle—from jumping ship. In addition to the grant, Boatwright’s interim CEO package announced in August included a $1 million base salary, a potential cash bonus of nearly $1.2 million, an additional restricted stock award valued at $3.5 million, plus a $200,000 aircraft allowance. Boatwright’s maximum potential package could top $11 million, if Chipotle’s stock price continues to perform, but the award could be higher depending on the actual value of Chipotle's shares when his awards vest.
“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,” said board chair Scott Maw in a statement on Monday. “Today's announcement is an affirmation of both Scott's leadership capability and our internal succession planning process. The board overwhelmingly believes Scott will deliver on the key strategies in place and position the company for continued success."
The package marks a significant rise from Boatwright’s previous comp as COO, valued at $6.3 million in the company’s 2023 annual shareholder report. But it’s a far cry from Niccol’s total pay in 2023, which was valued at $22.5 million, according to Chipotle’s disclosures. In a statement, a Chipotle spokesperson declined to comment on Fortune's valuation of Boatwright's compensation. "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," they said.
Niccol led the burrito-bowl giant from March 2018 to August 2024, driving stock price growth of 800% and a near sevenfold increase in profits, but left after Starbucks offered him a potential $113 million pay package to turn around the coffee chain. The bulk of Niccol’s package at Starbucks was doled out to make up for the pay he left behind at Chipotle, with a $10 million sign-on bonus and a $75 million equity grant.
Year of the COO
Niccol’s departure rocked Chipotle and led to a significant leadership shakeup at the chain, where Niccol served in a combination CEO and chairman of the board role. In response, the Chipotle board reworked its succession plan, accelerated several internal C-suite promotions, and made a series of equity grants with a combined total value of $34.5 million designed to keep the executive leadership team in place while it searched for its next Niccol.
Boatwright’s promotion from the COO post to the CEO role is in line with S&P 500 and Russell 3000 trends, according to a study from The Conference Board. In 2024, a whopping 77% of S&P 500 CEOs were promoted from within, with the COO position the most common springboard to the corner office, the study found. A separate study of S&P 1500 CEO transitions conducted by search firm Spencer Stuart found 57% of new CEOs were promoted COOs or presidents, a spike from 43% in 2022, leading it to dub 2023 “the year of the chief operating officer.”
As for the difference between Boatwright’s pay and Niccol’s, it isn’t unexpected. At the median, a new CEO is paid about 15% less than the previous one—usually because they come at a discount because they have less experience, the Conference Board study revealed. Companies in turmoil are more likely to look outside for their next senior leader and they often pay dearly for it. Outsiders usually need significant make-whole equity grants to make up for the stock they accumulated in a previous position. On average, CEOs hired from outside get paid 33% more than those grown from within, the study revealed.
At Chipotle, Niccol’s departure also shook up the highest ranks. Independent board member Scott Maw was appointed as board chairman in Niccol’s stead, a role he still holds even with Boatwright’s promotion. The Chipotle board also kept its outgoing chief financial and administrative officer Jack Hartung, who was set to retire on March 31, 2025 after 23 years in the CFO chair. Instead, the board named Hartung president of strategy, finance, and supply chain. The board gave Hartung an $8 million retention grant, the same value as Boatwright’s. Both awards have two-year vesting terms—generally designed to keep executives in their seats during potentially unstable times. The board also awarded a pair of $7 million retention grants to chief customer and technology officer Curt Garner and chief brand officer Chris Brandt, the company disclosed.
Chipotle sped up the appointments of Adam Rymer as chief financial officer and Jamie McConnell as chief accounting and administrative officer to Oct. 1 and gave both equity-based retention grants: Rymer’s was valued at $3 million and McConnell’s at $1.5 million. The two were supposed to move into their roles on Jan. 1, 2025 under the previous timeline that included Hartung’s retirement.
