By Becky Yerak | McDonald’s
Corp. Chief Executive James Skinner saw his pay jump 29 percent jump
in 2009 to $17.6 million, according to a proxy filed Friday with the
Securities and Exchange Commission.
Most of the increase came in the form of annual and long-term cash
incentive compensation, which jumped from a total of $4.6 million in
2008 to $11.5 million in 2009. Executives earn those bonuses based on
the company’s performance during the past three years.
Skinner’s salary rose 4 percent to $1.4 million. Stock and option awards fell 45 percent to $3.9 million in 2009.
It was McDonald’s sixth straight year of positive comparable sales growth in every geographic segment, with a global increase of 3.8 percent over 2008. That reflects the performance of stores open at least a year. Operating income rose by 6 percent, and the company returned $5.1 billion to its shareholders through share repurchases and dividends paid in 2009.
“Other” compensation rose 33 percent to $743,350. For example, the Oak Brook-based fast-food chain paid $71,562 for Skinner, also vice chairman, to use the company’s aircraft for personal reasons, the proxy said. Typically, the CEO is the only officer allowed to use the company’s aircraft for personal travel, but in certain circumstances the CEO may allow other executives to use the corporate aircraft for personal business, the proxy said.
He did so on a single occasion in 2009 for Ralph Alvarez, who retired as president in 2009. His total compensation rose 69 percent to $10 million, making him the company’s second highest-paid executive. Alvarez surprised Wall Street last December by announcing his retirement due to health problems. His salary rose 3 percent to $995,833. The chief reason for his big pay hike was a jump in his annual and long-term cash incentive compensation from $2.8 million to $6.2 million.
McDonald’s share were down 0.5 percent early Friday afternoon to $68.40.
Strong overseas growth for McDonald’s in February outweighed U.S. sales that barely nudged upward as it posted a 4.8 percent increase in sales at restaurants open at least a year.
The results came on the heels of January’s 2.6 percent rise and were a welcome return to steady growth after back-to-back months of declines late last year.
Comparable sales at restaurants open at least a year are a key indicator of performance because they measure growth at existing locations rather than newly opened ones.
Read the entire proxy.
Although I never eat McDonald’s crap food, James Skinner is a brilliant man and deserves every penny. McCafe was his idea, their coffee is the main reason for the increase in profit
And the people who make your food still get paid minimum or maybe a dollar above with no health insurance. Way to go, Micky D’s.
I agree. The rich get richer, and the poor get poorer. How much more of this are we suppose to take? Boycott McDonalds!
Hey Patrick, you may want to do some research before you go running your mouth. McDonald’s offers everyone who works for the company health insurance, from the fry cooks on up. And the people in the restaurants are paid according the skill and labor they produce. What, do you think that someone who runs a register should make $100K a year?
I used to caddy for Mr. Skinner years ago at a western suburban country club. He started working for McD’s when he was young and he made it all the way to the top. Good for you Mr. Skinner. You deserve this raise. The rich get richer because they work hard. He didn’t become CEO by sitting at home and using a LINK card. Job well done, and thanks for the shakes.
Hawk — But can they afford the health insurance offered on the wages they are paid?
Skinner should be rewarded for the great job he has done with McD’s since taking the lead. Only investment I’ve made that was profitable last year!
If those that work at McDonalds are upset about not receiving healthcare, perhaps they should find jobs that do provide that. I don’t believe anyone placed a gun to their head that told them they had to accept McDonalds’ job offer. It’s called free will, Patrick.
Patrick if you don’t like working at McDonald’s you can always quit.
I love it how whenever a news story involving CEO compensation hits the wire there’s ALWAYS some clown complaining about how “unfair” it is and how corporations are greedy and evil. They don’t stop to think that this is what CEO’s of Fortune 500 companies make. Compensation level is set by the free market. I don’t hear half the complaints about A-Rod making $25mm a year to play a game yet this person who’s everyday decisions affect THOUSANDS of people’s jobs is “greedy” for making $18mm/year . . . Get over it people. There’s nothing unfair about it. People with talent who work hard to get to where they are, be it hitting a baseball or running a business, deserve to get paid what the free markets will pay them. It’s called Capitalism and it’s what made this country what it is today . . .
Don’t worry all of your jealous people – Obama will take his money and redistribute it to all of you (so we can have crappy health care coverage and more unions at McCormick Place). This will encourage everyone to work harder to give away even more money!
would someone please tell me how these big business people can be worth this kind of money. Its rediculous how much he is being paid for nothing.
So I suppose all the hourly workers will also get some kind of profit sharing donation to go along with that?? Im all for sports guys marketing themselves as their own corp and getting 25 million a year if people are willing to dish out money for overpriced tickets, but this is an employer with thousands of employees and its not that easy quitting a job in this tight market. If the profits were so high there is no justification for the top managers getting the brunt of the bonuses, they should be spread out throughout the company, even if he is the nicest guy in the world, who cares, share the wealth there is plenty to go around.
Good for him, too bad a good chunk of the money he’s earned gets taken away from him in taxes. One thing you can count on this administration to do, punish the hard-working people in favor of the lazy ones looking for handouts.
My problem with this story is retaining good qualified workers, so that there is less turnover with the employees. The only way to do this is to have good salaries, not minimum wage and a good benefits package. Employees need to be rewarded also. This is a profit business, so I can see the CEO making money in this instance. The banking industry is another story you’re making money on fees being place on the customer to get their own money!!
$336,000.00 ++ A WEEK, for one guy. How much is too much?
marymary, how uneducated you sound, that is rediculous. You’re all for Arod making $25 mil for playing a game, yet a CEO of a fortune 500 company, and one of the most successful companies in the world isn’t worth $17 mil? By your thinking then, shouldn’t all the beer vendors, security guards, ushers, program vendors be making more money then? Shouldn’t A rod be giving them money out of his pocket. After all, they all help make the game experience what it is as well. Get a clue
As usual the left are obsessed with what others have and what they make.
If they had it their way they would cap salaries YET these psychos on the left get all bent out of shape when they’re labeled socialists or communists.
I would love to know who these people on the left think they are when they condemn CEO’s salaries? Its absolutely childish to get bet out of shape when someone you dont even know offends you by his or her salary ESPECIALLY when it has ZERO barring on your life.
Grow up!
Why is this man salary a topic. I must say that people today worry too much about others. Take a good look into the mirror and ask yourself what can I do to better myself. We judge, we worry, we talk to much and yes it’s free speech but what will make this world a better place, people minding there own business, taking care of homes, family, children etc., and not someone else. The american people need help but I guess this is an easy way out to comment on another man salary. Grow up get some business and make your life better, just do something positive.
I am sure these libs have no problem with Sean Penn making 15 million a movie as long as he keeps spewing his anti-capitalistic views
Hey Mike B,
First of all learn how to spell correctly before you call someone uneducated, secondly how many people does arod employ that have families? None, the beer vendors get paid by the the ballpark not the players. I never said that a ceo cannot make money, I just said if the company is making so much it should be spread across the board not only in some executives pockets, its only fair, but I supposed its people like you who make diddly think its ok for your boss to get all the cash, carry on loser.
Hey KEITH….how come you people are so afraid of Pres. Obama that you make up all this ridiculous stuff. His HC plan is the same one that a republican came up with and then opposed when it was presented by a democratic President. You call him a Socialist yet what has he done that is so Socialistic? I feel sorry for you. You are being manipulated by the insurance companies and the neo-cons by their vomit of hatred and fear.
Please give me an exact example of his Socialistic policies.
Get real, no CEO is worth this kind of money. The vast majority of their employees are minimum wage, probably with minimal benefits, who work their fingers to the bone for this company’s bottom line. And a better bottom line benefits who? Their CEO and their CEO only. America is quickly becoming a two-class society: the extremely wealthy CEOs and all the rest of us chumps who they push around!!!
Enough with the political commentary. The fact is this man made his shareholders a ton of money which is what he’s paid to do. If everyone could do his job they would, but that fact is they can’t. Thats why less than 1% of 1% are able to be CEO’s of the fortune 1000. If we start restricting people’s pay whats to stop them from saying a carpenter can only make $35,000 a year rather than $50,000. Is capitalism cruel…yes I believe it is, but it also allows for anyone to make buck. It just takes a little hard work.
Liberal & Free,
Raising taxes on the “wealthy”, and I put wealth in quotes because I hardly believe those making $250K/year are “wealthy” while nearly half the country (http://news.yahoo.com/s/ap/20100407/ap_on_bi_ge/us_no_taxes) gets by without paying a penny in taxes is a Socialist policy. It’s redistribution of wealth. I realize this phenomenon wasn’t created under Obama alone but he sure seems to have no problem going to the well of increasing the taxes of the wealthy when he needs to pay for something that benefits the poor to a greater extent. See Healthcare.
And MaryMary, I believe the fact that Mr. Skinner’s decisions greatly affect the very lives of those employees you empathize with is all the more reason why he’s worth the money he’s paid . . .
I work for McDonald’s and it’s a GREAT company to work for. Mr. Skinner works very hard to run this successful company, and he has paid his dues people. He started as crew and worked his way up to the top. He deserves every penny he earns. Perhaps you should learn more about the company and the many job opportunities for people out there before you make a quick judgment. http://www.mcdonalds.com.
It’s not such a disappointment when the CEO’s making big $$ earn it. The problem is the CEO’s who make the big $$ and run the company into the ground, but still get their healthcare paid for them and their family by the company,receive their salary for the next 5 years, then it drops down per centage wise, get a new company car every two years, still get their memberships at the country clubs paid for by the corporation, use the company jet whenever they need it. Bottom line, the company has done so poorly, they are bought out by another corporate giant – personnel are picked clean once again below the $100,000 salary level and the process starts all over. This is where stockholders come in – if the CEO doesn’t make the corporation money, no golden parachute for him. Same with professional athletes – you play well, then you get your bonus. Not at the beginning where they don’t really care, because they’ll get it no matter what.
Then how much should people make Mary? Why don’t we limit the amount of money that people win from the lottery? Is Bill Gates greedy because he has made so many billions? Since you’re vocal on the subject, use your vast wisdom and tell us how much each person should make. We’ll use the Economics According to Mary booklet to see how much everyone is worth. I get out of bed everyday to make money. I don’t really care about anything else or how much anyone else makes; it’s simply not my business. If you’re motivated to make everything fair for everyone, then I feel sorry for you. There’s nothing that says life is supposed to be fair. Death, taxes, no guarantees, and nothing is fair, so deal with it. If you land a job that pays you accordingly, then more likely than not you take that job. If you want to be paid more, you work your booty off and find that job or start your own business. Don’t slow me down by telling me that we should be fair to everyone. Not my problem.
Hey Paul, One day when you go work for someone that is making millions in bonuses and then tells you that you wont have a job soon cause your job is being transferred to China to increase the bottom line, you will be singing a different song, no job for you, but I still get my bonus. Just keep those blinders on to the world around you. Its not a question of how much as you reference its a questions about eventually there only being 2 classes the rich and poor, there will be no more middle class and guess where you will be??
Hey Mary, so the people in China/India don’t deserve jobs, but you do? Get a grip. There is more to the world than the USA.
Why dont you give them your job then Katelyn if you are so genorous?
@Patrick: “But can they afford the health insurance offered on the wages they are paid?”
McD health insurance premiums are in three tiers where restaurant employees pay less than everyone else, and executives pay much more. I don’t remember the numbers but I believe the lowest tier was quite affordable. This may not apply to franchisee’s however.
Mary, seems you may be bitter that you’ve lost your job? There are lots of opportunites at McDonald’s for people in the restaurants and in the corporate office. Check out their website.
bd42 is correct. McD upper mgmt does pay substancially more for insurance premiums to support the lower level workers. MCD also offers their employees many opportunities for future advancement. A MCD restaurant manager is paid pretty well and its a tough job but the opportunities are there. Also, at the start of the millenium when MCD was losing money no officiers in the company received bonus because of the poor performance of the company. MCD is a great example of a company that does do the right thing.
Just another reason not to go to McDonald’s.
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