McDonald’s Chris Kempczinski will speak at a press conference in New York on November 17, 2016.
Shannon Stapleton | Reuters
McDonald’s CEO Chris Kempczinski received more than $ 10.8 million in compensation last year, despite the company’s failure to meet its performance goals, according to the company’s filing.
In April, a fast-food giant said executives would cut the price as a coronavirus pandemic struck the restaurant industry. Kemptinsky’s base salary was halved, but revived in October as the company’s sales recovered. Without a salary cut, his base salary would have been $ 1.25 million, but instead received about $ 963,500.
Like most CEOs of publicly traded companies, most of Keptinsky’s compensation does not come from salary. Stock and options rewards added $ 9.5 million to his compensation, while other forms of compensation, such as the company’s use of private planes, accounted for an additional $ 383,000.
McDonald’s management did not receive a performance-based bonus because it failed to meet its goals of operating profit, overall system sales, and same-store sales growth. Kempchinsky could have earned an additional $ 4.25 million. The total CEO compensation for the chain in 2019 eventually exceeded $ 18 million.
Kemptinsky’s 2020 salary is 1,189 times the median McDonald’s employee who earned $ 9,124 last year, based on company estimates. McDonald’s includes part-time and seasonal workers in its wage rate estimates. Kempchinsky told CNBC in November that the company was ready to discuss the minimum wage.
The lack of executive wage cuts and performance-based bonuses means that McDonald’s wage ratios were actually much closer than in the last few years. In 2019, the median worker was one in 1,939 of the CEO’s total compensation, and about 20% of the shareholders who voted rejected McDonald’s management compensation proposal last year. The standard is 10% or less.
McDonald’s is not the only one facing disagreements over executive compensation from shareholders. Starbucks shareholders recently rejected the coffee chain’s compensation plan, although the vote was not binding.
McDonald’s CEO Chris Kempczinski earned more than $ 10.8 million in 2020
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