Chris Kempczinski, McDonald’s speaks during a press conference in New York on Nov. 17, 2016.
Shannon Stapleton | Reuters
McDonald’s CEO Chris Kempczinski received more than $ 10.8 million in compensation last year, although the company missed its performance target.
In April, the fast-food giant said executives would cut costs as the coronavirus outbreak destroyed the restaurant industry. Kempczinski̵7;s base salary has been cut in half. But it was reinstated in October as sales of the company recovered.Without salary cuts, his base salary would be $ 1.25 million, but he received about $ 963,500 instead.
Like the top executives of a publicly traded company, most of Kempczinski’s compensation is not from a salary. The stock and options award added $ 9.5 million to his compensation and other forms of compensation such as the use of the company’s private jet, for an additional $ 383,000.
McDonald’s executives were not offered performance-based bonuses as the company was unable to meet its goal of growth in operating revenue, system sales and same-store sales.Kempczinski could earn another $ 4.25 million. The total CEO compensation of Shane in 2019 was $ 18 million.
Kempczinski’s 2020 wages were 1,189 times the median wages of McDonald’s employees, which made $ 9,124 last year, according to company estimates McDonald’s included part-time and seasonal workers in the estimate for the pay ratio. Kempczinski Money told CNBC in November that the company is open to discussing the minimum wage.
The executive pay cut and the lack of performance-based bonuses mean that McDonald’s pay ratios are much closer than they did in the previous year.In 2019, median-paid workers made 1,939 less than the total CEO pay. Times resulted in roughly 20% of voting shareholders rejecting McDonald’s offer for management compensation last year.The norm was 10% or less.
McDonald’s is not the only company to face a disagreement over executive pay from its shareholders.Recently, Starbucks shareholders rejected the coffee chain’s compensation plan, although the vote was not binding.