Summary
This 8-K filing from McDonald's Corporation (MCD) on May 18, 2009, announces a significant equity incentive grant to Mr. Denis Hennequin, a named executive officer. The grant, approved by the Compensation Committee on May 12, 2009, consists of Restricted Stock Units (RSUs) under the company's 2001 Omnibus Stock Ownership Plan. These RSUs are subject to a three-year cliff vesting period, with vesting contingent on achieving a specific performance metric: compounded annual growth in diluted Earnings Per Share (EPS). The target for vesting is a 6% compounded annual EPS growth. Notably, if the EPS growth is below 1%, none of the RSUs will vest, and partial vesting will occur proportionally between 1% and 6% growth. This structure highlights McDonald's focus on aligning executive compensation with key financial performance indicators.
Key Highlights
- 1McDonald's Corporation granted Restricted Stock Units (RSUs) to executive Denis Hennequin on May 12, 2009.
- 2The grant was approved by the Compensation Committee of the Board of Directors.
- 3The RSUs are part of the Amended and Restated 2001 Omnibus Stock Ownership Plan.
- 4Vesting is subject to a three-year cliff period.
- 5A performance-based condition requires a 6% compounded annual growth in diluted EPS for full vesting.
- 6No RSUs will vest if compounded annual EPS growth is below 1%.
- 7Pro-rata vesting will occur for EPS growth between 1% and 6%.