FINALLY !! Someone said it. McD BOD is way too old, too comfortable longevity wise and enjoys a incestuous relationship with McD via the supplier tie ins. Add to that the mostly Chicago bent, and its not a good recipe for success today. Turn over 75% of the board, bring back age and term limits, limit supplier participation, diversify from Metro Chicago execs, and you will see a sorely need change in direction. Otherwise , youre just rearranging chairs on the Titanic.
Thirty or forty years ago, when the suppliers were helping build the McDonald's system, it might have been appropriate for suppliers to be on the board. Today, McDonald's needs directors who will keep an eye on management and the suppliers.
It's almost universal that franchisor executives take kickbacks from approved suppliers. The directors of a publicly held franchise company should be the firewall against that type of corruption.
This board has served the company well but it is long past due for changes at the board level. MCD needs to decide "who we are". MCD seems to have evolved into an organization that wants to be an agent of social change rather than selling food for a profit. Given proper policy direction there is a lot more money to be made by everyone.
My perspective: I am a franchisee, no financial background on operating publicly held companies. I am not a shareholder as all my eggs are in the basket of owning restaurants. I do not understand why you would own restaurants and shares of stock. The board does not have day to day decisions on how McDonald’s Corporation is operated the BOD hires or puts in place competent leadership to operate the McDonald’s business, leadership is responsible for the position we are in (not my mystery shop scores and voice scores!). The BOD is there to increase shareholder value of course that does take all parties being profitable and functioning cohesively. I personally think the BOD has no clue and has acted irresponsible with shareholders equity and cash flow. They should be modernizing the buildings they own, free cash flow should be used to diversify and buy or buy into other companies, why would you borrow money and buy your own stock back at an inflated price now when the market is high after a good run the last six years, wait for it to dip buy it back when it is down reassuring shareholders and bringing more value to the stock. McDonald’s can always borrow against their assets and buy stock back. Mr McKenna was there when McDonald’s tried to diversify by buying other restaurants and was there when they sold Chipotle why don’t shareholders have the board answer to that bonehead move.It seems to a certain extent McDonald’s management sometimes runs the board. I don’t think the board has ever talked to the NLC which they should that is the group who represents 90% of the restaurants operating, it would seem they would want to talk with the folks operating their restaurants not just hear just what management is saying.This BOD is irresponsible with shareholders equity and cash flow, seems to give no guidance to McDonald’s leadership, does not want to hear from the trenches what is wrong with their business. If I was a shareholder I would not want this current BOD overseeing my percentage of ownership.
Problems being faced today are largely self inflected. The Board was there when the "ship hit the sand". They did not correct course and I think it is because top management has too much influence on the Board. It is time for a change.
Out with the old, bring on the new. The times have changed and dinosaurs can't run in the fast lane or the drive thru lane for that matter.
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