April 7, 2016

Fortune's Beth Kowitt on the McDonald's Board

McKenna's retirement ends a long era in which McDonald's suppliers held positions on
the McDonald's board of directors. It's easy to see the logic in this approach when the 
company was young and growing and all involved had an interest in building a strong 
system. That's when Fred Turner began using the "three legged stool" analogy.

But the supplier leg got shaky in the 1990s and let two successive CEO failures stay in 
the job far too long. It's was impossible for the board members to force changes when 
the CEO was one of their biggest (or only) customers.

After McKenna there does not appear to be any board members with a direct McDonald's supplier connection.

The retirement of McDonald’s non-executive chairman Andy McKenna next month is one of the biggest changes the company has made in years.
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2 comments:

Anonymous said...

I nominate Ed Rensi for Chairman. Perfect choice. I hear he may be available.

Anonymous said...

The Board concerns itself only with pushing the stock price higher and does nothing for the franchisees. If the Board can have a supplier partner or McD corporate employee as a director it should also open up a position to a franchisee.