8-KLeadership Changes

MCDONALDS CORP 8-K Report, Executive Changes (Mar 23, 2007)

Filed March 23, 2007For Securities:MCD

Summary

This 8-K filing from McDonald's Corporation announces a key executive transition within its finance department. Effective April 1, 2007, Peter J. Bensen will assume the role of Corporate Senior Vice President - Corporate Controller, succeeding David M. Pojman. Mr. Pojman is set to retire in early 2008 and will transition to overseeing internal audit until his departure. This leadership change also brings Mr. Bensen into McDonald's Cash Performance Unit Plan (CPUP) for the 2007-2009 performance period. His prorated target award is $252,175, with potential payouts based on consolidated three-year compounded annual Brand McDonald's operating income growth (75% weighting) and average return on total assets (25% weighting). The final payout will also be adjusted by a multiplier reflecting McDonald's total shareholder return relative to the S&P 500, with a maximum payout of 230% of the target award.

Key Highlights

  • 1Peter J. Bensen promoted to Corporate Senior Vice President - Corporate Controller, effective April 1, 2007.
  • 2Current Corporate Controller, David M. Pojman, to retire in early 2008, moving to oversee internal audit.
  • 3Bensen becomes eligible for the 2007-2009 Cash Performance Unit Plan (CPUP).
  • 4Bensen's prorated target award for the CPUP is $252,175.
  • 5CPUP performance metrics include Brand McDonald's operating income growth (75%) and average return on total assets (25%) over a three-year cycle.
  • 6Final CPUP payout adjusted by total shareholder return relative to the S&P 500 (up to +/- 15%).
  • 7Maximum potential payout under CPUP is 230% of the prorated target award.

Frequently Asked Questions

Peter J. Bensen will succeed David M. Pojman as Corporate Senior Vice President - Corporate Controller, effective April 1, 2007.

Mr. Pojman has decided to retire in early 2008. Until his retirement, he will continue to serve as Corporate Senior Vice President with responsibility for internal audit.

The CPUP is a three-year incentive plan. As a result of his promotion, Mr. Bensen will participate in the 2007-2009 CPUP cycle on a prorated basis. His prorated target award is $252,175, with payouts determined by operating income growth and return on assets, adjusted by shareholder return relative to the S&P 500.

The performance metrics are consolidated three-year compounded annual 'Brand McDonald’s operating income growth' (weighted 75%) and average return on total assets (ROTA) (weighted 25%). The payout is also adjusted by McDonald's cumulative total shareholder return versus the S&P 500 Index.