With Chipotle’s CEO off to a new job at Starbucks, the fast-casual chain is awarding big retention bonuses to keep top executives at the helm.
The company on Wednesday said CFO Jack Hartung, who had planned to retire, is staying on at Chipotle “indefinitely,” starting a new role as president and Chief Strategy Officer on Oct. 1.
That also accelerates Adam Rymer’s move into the CFO seat, along with Jamie McConnell, who was named chief accounting and administrative officer. Both will also move into their new roles on Oct. 1.
This is a dramatic change from what had been announced in July. Hartung announced plans to retire next year, scheduling his actual exit for March 2025. Rymer was on deck to officially become CFO on Jan. 1, and the two planned to work together for the first quarter to ensure a smooth transition.
That plan, however, was announced before Chipotle CEO Brian Niccol took a new job at the helm of Starbucks.
Scott Boatwright, who has been Chipotle’s chief operating officer since 2017, was named as interim CEO, and the company said a search for a replacement will be held as a matter of good governance.
Meanwhile, both Hartung and Boatwright—and others in the C-suite—are being given good reason to stay.
The board on Aug. 22 approved retention awards and adjusted compensation for several of the top execs, according to a filing with the U.S. Securities and Exchange Commission.
Boatwright and Hartung were awarded retention bonuses of $8 million each.
Curt Garner, Chipotle’s chief customer and technology officer, and Chris Brandt, chief brand officer, were each awarded retention grants of $7 million.
The awards will vest at 60% on the first anniversary of grant date and 40% on the second anniversary, and they depend on continued service and other conditions. However, if an external CEO is named, and their employment is terminated without cause or resignation for a good reason, the awards will vest in full at that time, the filing said.
Boatwright’s award will vest on a pro-rated amount if he resigns voluntarily. His base salary as interim CEO will be $1 million, with an annual cash incentive target of 115% of that base. He will also be allowed use of the company aircraft, and stock valued at $3.5 million.
Hartung, meanwhile, has to stick around for at least a year for his retention award to fully vest, but he can still receive it in full if he retires after the one-year anniversary, the company said.
Rymer will receive a retention award of $3 million, and $1.5 million for McConnell, over the course of three years.
Rymer’s base salary will be $650,000 with an annual cash incentive target of 90% of base, and $750,000 in stock until the next annual equity award in early 2025, along with other benefits.
McConnell’s base salary will be $450,000.
Chipotle noted the deep bench of experience leading the company. Hartung served as CFO for 25 years, joining the chain when it had just 200 units (it now has more than 3,500). Rymer joined the company 15 years ago.
Garner joined Chipotle in 2015. Boatwright joined in 2017, and Brandt in 2018.
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