During a time when corporate executives are having their compensation packages curtailed, McDonald’s (NYSE:MCD) has a different approach: it ran in the opposite direction, tripling the pay packages for its current CEO Don Thompson, and its ex-chief, Jim Skinner.
Thompson was awarded $13.8 million in 2012, a 237 percent increase over his pay in 2011. Skinner was paid $27.7 million, or 211 percent more than the year prior. Thompson served as the chief operating officer, until he took over Skinner’s CEO chair in July of last year. Of his total, $10.2 million of Skinner’s compensation was awarded as part of his retirement agreement.
Thompson made a base salary of $979,167 and stock awards of $660,129. His pay increase came mostly from his option awards, which rose to $3.2 million from $785,902, and his incentive pay, which rose to $8.6 million from $1.5 million, USA Today said, according to the company’s SEC filings…
In the later part of last year, McDonald’s experienced its first sales decline in nearly 10 years, on the heels of continuous strong growth. After firing the head of its American division, the fast-food chain put extra emphasis on the dollar menu and McDonald’s commitment to value.
Despite the recession, McDonald’s managed to grow under the worst of the economic climate and has cited its “Plan to win” strategy with cut backs on new store openings, eliminating unprofitable elements, and expanding its menu items.
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