Summary
This 8-K filing from McDonald's Corporation, dated February 14, 2017, details the compensation arrangements for certain executive officers under the 2017 Target Incentive Plan (TIP). The Compensation Committee approved the payout structure, emphasizing that awards are primarily tied to the company's operating income growth in 2017 compared to 2016. This performance metric is crucial, as executive officers are not eligible for payouts if the company or their specific business segment does not achieve operating income growth. The filing specifies target TIP awards as a percentage of base salary for key executives, including CEO Stephen Easterbrook (175%) and CFO Kevin Ozan (100%). The payout is not solely based on operating income growth; it can also be influenced by company performance against pre-established business initiative modifiers. Furthermore, a maximum payout of 200% of the target award is in place for these executives. Investors should note that operating income for compensation purposes may be adjusted to reflect constant currencies and exclude non-indicative items at the Committee's discretion.
Key Highlights
- 1McDonald's Compensation Committee approved the 2017 Target Incentive Plan (TIP) payout structure for certain executive officers.
- 2TIP payouts are primarily linked to the company's operating income growth in 2017 over 2016.
- 3Executives are ineligible for TIP payouts if the company or their applicable business segment does not achieve operating income growth in 2017.
- 4CEO Stephen Easterbrook has a target TIP award of 175% of his base salary.
- 5CFO Kevin Ozan has a target TIP award of 100% of his base salary.
- 6Payouts can be influenced by company performance against pre-established business initiative modifiers.
- 7The maximum TIP award achievable by these officers in 2017 is 200% of their target award.