Chipotle's former CEO, Brian Niccol, is receiving $85 million in cash and stock from Starbucks for joining the company.

• Chipotle CEO Brian Niccol will receive $10 million in cash and $75 million in equity awards upon joining Starbucks.
• Niccol will receive a base salary of $1.6 million and has the potential to earn an additional $7.2 million in cash.
• The coffee chain's slumping business will require Niccol, as CEO, to implement changes.

To entice Brian Niccol from his position as CEO at to join the company as CEO and Chair, the board presented him with a substantial salary increase and a sizable one-time reward.

On Sept. 9, Niccol will assume the role of CEO at the struggling coffee chain, with the responsibility of revitalizing its sales, enhancing the customer experience in stores, and determining the fate of its underperforming China business. This daunting task will be rewarded with a generous compensation package.

On Wednesday, Starbucks revealed Niccol's upcoming pay plan in a filing. The majority of his compensation is in the form of equity that vests over time and is tied to company performance targets and other metrics. If the company meets its targets in his first year, his pay package could be worth as much as $116.8 million.

Niccol will receive a base salary of $1.6 million and have the chance to earn an additional $7.2 million in cash. He will also be eligible for annual equity awards worth up to $23 million.

Niccol will receive a $10 million cash bonus and $75 million in equity upon leaving Chipotle, which will vest over a three-year period based on company performance and Niccol's tenure.

"Starbucks has announced that Brian Niccol has been recognized as one of the most successful leaders in the industry, with a track record of generating substantial financial returns over several years. His compensation at Starbucks is directly linked to the company's performance and the shared success of all stakeholders. The company is confident in his ability to continue delivering long-term, sustainable value for partners, customers, and shareholders."

Last year, Niccol earned a $1.3 million base salary at Chipotle, with a total compensation of $22.5 million. The majority of his earnings came from stock awards and options, but he also received a cash bonus of $5.2 million.

During his time at Chipotle, the stock increased by 773%, boosting the worth of his overall compensation.

Laxman Narasimhan's compensation was valued at $14.6 million in fiscal 2023, largely from stock awards, while Niccol's pay package is more generous, with a base salary of $1.3 million, possible cash bonuses of up to $5.85 million, and equity awards of $13.6 million.

Unlike Narasimhan, who was previously based in the U.K., Niccol won't have to move to Starbucks' headquarters in Seattle.

— CNBC's Kate Rogers contributed to this report