What are the key performance drivers for executive bonuses in 2012?

Executive bonuses, under the 2012 Target Incentive Plan (TIP), are driven by a combination of a team performance factor and an individual performance factor. The team performance factor is primarily based on the growth in the Company's operating income in 2012 compared to 2011, measured in constant currency. Without achieving operating income growth, named executive officers are generally not eligible for a TIP payout.

What significant changes were made to McDonald's By-Laws?

The By-Laws were amended and restated to remove the exclusive jurisdiction of the Delaware Court of Chancery for certain legal actions, offering more flexibility. Other administrative changes were made to clarify rules for shareholder meeting conduct and to update provisions related to shareholder nominations and stock transactions.

How is the 2012 TIP award calculated for the top executives?

The target TIP award is set as a percentage of base salary, ranging from 150% for the CEO (James A. Skinner) down to 85% for certain regional presidents. The final payout depends on achieving specific operating income growth targets (for the 'team' factor) and meeting individual performance goals. The maximum an executive can earn is 250% of their target award.

Did McDonald's announce any dividend information in this filing?

Yes, the filing includes an Investor Release dated January 26, 2012, announcing that the Board of Directors declared a quarterly cash dividend.

MCD 8-K: Leadership Changes, Corporate Changes & More

Summary

McDonald's Corporation (MCD) filed an 8-K on January 30, 2012, detailing key updates approved by its Board of Directors. The filing outlines the 2012 Target Incentive Plan (TIP) payout structure for its named executive officers, tying awards to corporate and individual performance metrics, with a minimum requirement for company operating income growth. Additionally, the company amended and restated its By-Laws, notably eliminating the previous exclusive forum for certain legal actions in Delaware's Court of Chancery and making administrative changes to meeting governance and shareholder-related provisions. The release also announced a quarterly cash dividend declaration.

Key Highlights

12012 Target Incentive Plan (TIP) for senior executives approved, linking payouts to operating income growth and individual performance.
2Named executive officers' target TIP awards range from 85% to 150% of base salary, with a maximum potential payout of 250% of the target award.
3Company operating income growth in 2012 is a prerequisite for named executive officers to receive a TIP payout.
4By-Laws amended and restated, removing the exclusive Delaware Court of Chancery as the sole forum for certain legal actions.
5By-Laws updated to clarify rules for shareholder meeting conduct and administrative provisions.
6Quarterly cash dividend declared and announced via an Investor Release on January 26, 2012.

MCDONALDS CORP 8-K Report, Executive Changes (Jan 31, 2012)

Summary

Key Highlights

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