8-KLeadership ChangesExhibits & Filings

MCDONALDS CORP 8-K Report, Executive Changes (Dec 20, 2010)

Filed December 20, 2010For Securities:MCD

Summary

This 8-K filing from McDonald's Corporation reports on the departure of Denis Hennequin, former President of Europe, and the terms of his separation agreement. The agreement, effective November 30, 2010, outlines a settlement indemnity payment of 310,000 euro to Mr. Hennequin in exchange for his resignation and adherence to confidentiality and non-solicitation covenants for two years post-resignation. The filing also details Mr. Hennequin's entitlement to certain other payments and benefits, including an expatriate premium, a pro-rata payout from a performance unit plan, the ability to exercise vested stock options, and accrued vacation pay. These provisions ensure an orderly separation while protecting the company's interests through non-compete and non-solicitation clauses.

Key Highlights

  • 1Denis Hennequin, President of McDonald's Europe, resigned effective November 30, 2010.
  • 2McDonald's entered into a Transaction Settlement Agreement with Mr. Hennequin.
  • 3The company will pay Mr. Hennequin a lump sum settlement indemnity of 310,000 euro.
  • 4Mr. Hennequin agreed to confidentiality and a two-year non-solicitation/non-hiring covenant.
  • 5He remains subject to a one-year non-competition restriction from his employment agreement.
  • 6Entitlements include a pro-rata payout from the 2010-2012 Cash Performance Unit Plan, payable in 2013.
  • 7Mr. Hennequin can exercise vested stock options until February 28, 2011, with restrictions on selling shares for four years from grant date.

Frequently Asked Questions

This 8-K filing is primarily to report the departure of Denis Hennequin, former President of McDonald's Europe, and to disclose the terms of his separation agreement with the company.

McDonald's will pay a settlement indemnity of 310,000 euro to Mr. Hennequin. Additionally, he is entitled to a pro-rata payout from a performance unit plan based on company performance, and the exercise of vested stock options, which represent contingent future costs dependent on performance and option vesting schedules.

McDonald's has secured confidentiality covenants and a two-year non-solicitation/non-hiring agreement from Mr. Hennequin. He also remains subject to a one-year non-competition restriction as per his original employment agreement, mitigating risks of competitive activities or employee poaching.

Mr. Hennequin will receive accrued vacation pay and an expatriate premium upon his departure. The pro-rata payout from the 2010-2012 Cash Performance Unit Plan is contingent on McDonald's performance and will be paid in 2013. He can exercise vested stock options until February 28, 2011, but the sale of underlying shares is restricted for four years from the grant date.