8-KLeadership Changes

MCDONALDS CORP 8-K Report, Executive Changes (Jul 21, 2015)

Filed July 21, 2015For Securities:MCD

Summary

McDonald's Corporation (MCD) has filed an 8-K report detailing adjustments to the 2015 Target Incentive Plan (TIP) awards for two key executives: Douglas Goare, President of International Lead Markets, and David Hoffmann, President of High Growth Markets. Effective July 1, 2015, their target TIP awards have been increased from 85% to 90% of their December 31, 2015 base salary. This increase is pro-rated to reflect the period at each target compensation level. The Compensation Committee cited a review of market data for executives at peer companies and the alignment of executive interests with shareholders as the rationale for these revised awards. This adjustment aims to ensure executive compensation remains competitive within the industry and incentivizes performance, particularly in light of the company's announced turnaround plan. No other aspects of their 2015 TIP awards have been altered.

Key Highlights

  • 1McDonald's revised the 2015 Target Incentive Plan (TIP) awards for two top executives, Douglas Goare and David Hoffmann.
  • 2The target TIP award percentage for these executives increased from 85% to 90% of their base salary.
  • 3The change is effective July 1, 2015, and will be pro-rated for the year.
  • 4The Compensation Committee reviewed market data for peer companies to justify the adjustment.
  • 5The stated goal is to align executive compensation with industry peers and shareholder interests.
  • 6This adjustment is linked to the company's ongoing turnaround plan.
  • 7No other components of the executives' 2015 TIP awards were changed.

Frequently Asked Questions

The Compensation Committee increased the target incentive awards to align executive compensation with market data for peer companies and to further align executive interests with those of McDonald's shareholders, especially in conjunction with the company's turnaround plan.

Douglas Goare, President - International Lead Markets, and David Hoffmann, President - High Growth Markets, received the increased incentive awards.

The change is effective July 1, 2015. The new target of 90% of base salary will be pro-rated to reflect the portion of the year at each compensation target.

No, this adjustment specifically applies to the 2015 TIP awards for Mr. Goare and Mr. Hoffmann. No other changes were made to their 2015 TIP awards or to the compensation arrangements of any other named executive officers.