Tuesday, July 2, 2019

McDonalds Corp Top-Tier Executives Average Pay Raise Was a Completely Off-the-Charts 30.7% Per Year During the Past Ten Years (2009-2018)

From Company Proxy Statement filings with the SEC, below are the McDonald's Corp Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years.

McDonald's is the 17th Dow Industrial Company I have researched so far on Top-Tier Executives Average Long-term % Pay Raises Per Year.  Its Off-the-Charts 30.7% per year is the very highest of these 17 Dow Companies and there's quite a gap between McDonald's and fellow Chicago Company Caterpillar's second highest 24.4%. 

McDonald's 30.7% per year 10 year average annual pay raise is much lower than its 45.2% per year 4 year average annual pay raise since McDonald's key CEO change in March 2015.  So on the downside, McDonalds contribution to US Annual Pay Raise Income Inequality was especially expanded during the most recent 4 years.    

To fix Income Inequality driven mainly by Company choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed Fair Pay Raise Income Inequality Narrowing Company tax incentives ..... the carrot ..... and Company wise tax disincentives ..... the stick.

Also, the US Government should require all US Corporate Boards to include at least one worker representative. 

I will continue this same research for many other large US Companies to get a better handle on just why the US has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative annual pay raise percentages.


FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
McDonalds 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Stephen Easterbrook     15,876     21,761     21,761     15,356     15,356       7,909       7,909       1,690  N/A   N/A 
Kevin Ozan       4,650       5,474       5,474       4,437       4,437       2,061  N/A   N/A 
Douglas Goare       4,359       5,599       5,599       4,849       4,849       3,275       3,275       2,905       2,905       3,919
Christopher Kempczinski       4,678       3,847       3,847       1,789  N/A   N/A 
Joseph Erlinger  N/A   N/A 
Silvia Lagnado       3,974       3,463  N/A   N/A 
Gloria Santona  N/A   N/A 
Michael Andres  N/A   N/A 
Peter Bensen  N/A   N/A        3,976       2,794       2,794       3,600
David Hoffman  N/A   N/A        2,928       2,760       2,760       3,239
Donald Thompson          N/A   N/A        7,289       9,497
Timothy Fenton  N/A   N/A 
Totals     29,563     36,681     40,655     29,894     24,642     13,245     18,088     10,149     15,748     20,255
Annual % Change -19.4% 36.0% 86.0% 78.2% -22.3%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
McDonalds 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Donald Thompson       9,497     13,752     13,752       4,074       4,074       4,131       4,131       5,138       5,138       2,333
Douglas Goare       3,919       4,509  N/A   N/A     
Peter Bensen       3,600       7,332       7,332       2,893       2,893       3,027       3,027       4,982       4,982       2,173
David Hoffman  N/A   N/A 
Timothy Fenton       4,014       5,889       5,889       2,478       2,478       2,759       2,759       6,129       6,129       4,057
James Skinner          N/A   N/A        8,751       9,733       9,733     17,574     17,574     13,597
Janice Fields       4,826       2,154       2,154       2,153  N/A   N/A 
Denis Hennequin       2,274       5,678       5,678       3,161
Ralph Alvarez       9,956       5,885
Totals     21,030     31,482     31,799     11,599     20,350     21,803     21,924     39,501     49,457     31,206
Annual % Change -33.2% 174.2% -6.7% -44.5% 58.5%
10 Year Avg Per Year % Change 30.7%