April 6, 2016

Chairman Leaving McDonald's Board

When Wall Street Watchers discuss why a corporate CEO should not also be the
Chairman of the Board the example they often cite is the disastrous tenure of
Jack Greenberg as both Chairman and CEO of McDonald's. 

Any bets the still green CEO of McDonald's will become Chairman?

Andrew J. McKenna to Retire From McDonald's Board of Directors
.

11 comments:

Richard Adams said...

When you one to five store Operators who happen to be over 60 yrs. old are encouraged to "plan for retirement" by a forty year old regional staffer you might remind them that during the McDonald's "turnaround" the chairman of the board was a spirited 86 yrs. old.

Anonymous said...

NOT GOOD NEWS...Mckenna needed to go but his replacement does NOT need to be an insider Like Easterbroke !!!

Anonymous said...

Now if we can get another 3-5 with Chicago ties to retire, and replace them with younger, NON Chicago folks, we will be on the right track!

Anonymous said...

There is a lot of subtle encouragement being given to older operators to formally make plans to exit the system. However, they are being very careful not to expose themselves to any claim of age discrimination. You can see it and hear it. Debt is going to keep lots of older operators around for many more years.

The winds of change continue to blow within the MCD system. McKenna leaving is good for MCD and for him as well, I think. His replacement will say a lot about who really runs MCD, the Board or Top Management. I'm of the opinion that the Board should be independent of top management.

I'm told that our region was advised that more layoff's are coming.

Anonymous said...

McKenna was too cozy with management/Wall Street and helped the company lose it's way with Owner/Operators. Never knew a golden parachute he didn't like for departing top executives. Should have been gone 10 years ago.

Richard Adams said...

It has been pointed out to me that the corporate press release says the BOD: "will elect a new independent Chairman following the election of Directors by shareholders at the Annual Meeting".

I guess a person who gets a corporate paycheck can't be considered "independent".

Anonymous said...

How about putting a small ex-operator, not affiliated with leadership or OPNAD, on the BOD. Wouldn't that be a refreshing change. Fat chance!

Anonymous said...

Seriously, The Chairman of the BOD is a critical position. I can't even imagine who may be considered. Knowing MCD I have confidence that McKenna stepping down is no surprise and that his replacement has been under discussion for many months. I'm not sure how that process works. Once a new BOD is elected by the stockholders does the BOD then nominate and vote on a Chairman? Is it required that the Chairman come from the new BOD. Who are being voted on to become the new BOD? Anyone know?

Anonymous said...

Hey, if they can wait until next January, I know the perfect person for Chairman with top executive experience running a multi-trillion dollar organization. He already has a home in Chicago. Modern and very progressive.

Richard Adams said...

Yes, and his old buddy Robert Gibbs already works in Oak Brook.

Anonymous said...

Yes, being Chairman is VERY critical. It's critical that you stack the Board with your executive buddies who will always support your vote, especially on the compensation committee. Then, you make sweetheart deals with your vendors who GIVE BACK to the "community"; next, you infuse the corporate culture with the following: A.Nothing is more important than reducing OUR debt, improving OUR cash flow and maintaining OUR dividends by making the Owner/Operators "pay" for everything; B.Refer back to "A". Then, when you are forced to fire anyone in management, you make sure they have a great "golden parachute" and/or consulting deal so they can't screw you over for the next couple years. Lastly, since you're modern and progressive, you complete the plan to get out of the restaurant business by re-franchising your stores, because "hell, we ain't going to pay a $16/hr. minimum wage!"