Summary
This 8-K filing from McDonald's Corporation details the 2019 Target Incentive Plan (TIP) awards for its key executive officers. The Compensation Committee of the Board of Directors approved the payout structure, which is primarily tied to the company's performance in operating income and comparable guest counts for 2019, measured against 2018 results. These metrics are crucial for understanding how executive compensation will be aligned with overall business growth and customer traffic. Notably, the President and CEO, Stephen Easterbrook, has the highest target TIP award at 180% of his base salary, while other named executive officers have targets ranging from 80% to 100%. The plan also includes a performance modifier linked to the company's Velocity Growth Plan, adding another layer of strategic alignment. Maximum payouts can reach up to 200% of the target award. Investors should note that operating income will be measured in constant currencies and certain non-indicative items may be excluded, providing flexibility in how performance is assessed for compensation purposes.
Key Highlights
- 1McDonald's Compensation Committee approved the 2019 Target Incentive Plan (TIP) payout structure for certain executive officers.
- 2Executive compensation is primarily linked to growth in operating income and comparable guest counts in 2019 compared to 2018.
- 3CEO Stephen Easterbrook has the highest target TIP award at 180% of his base salary.
- 4Other named executive officers have target TIP awards ranging from 80% to 100% of base salary.
- 5TIP payouts will be based on consolidated performance for the CEO, CFO, and Global CMO, while the President of McDonald's U.S.A. will have a combined segment and consolidated performance basis.
- 6A performance modifier tied to the Velocity Growth Plan can positively or negatively impact payouts.
- 7The maximum TIP award any executive can earn is 200% of their target award.