The average pay for a CEO of a fortune 500 company is around $10 million dollars including all bonuses so I believe Easterbrook received about a $15 million dollar package so I would say that is to much for a new CEO.
Yeah, but the British accent makes him sound more intelligent than other CEOs so that's worth a extra $5 million.
RICHARDwhat are the VEGAS betting odds that our British CEO (AUSTIN POWERS) will be with MCD in 2020 at the end of the turn around?I ASSUME it opens at 100 to 1. Cleveland might have a better chance of winning the Super Bowl than him staying that long. CRIS K. as wellWhere do we place a bet?
2020? ... Will they make it to the Worldwide convention in 2018?
The BROWNS have a better chance of winnng the SUPER BOWL. DA BEARS as wellGoing to be a big parachute !!!!
It certainly sounds too much considering the average. However, In September of 2015 when "turn around" was being sold I purchased a block of stock for about $69.00 per share. Yesterday, it was selling for $132.00 per share. Sales are up but not by much. But, if you are a hedge fund, a large retirement fund or another investment group that owns hundred's of thousands of shares you would say he is worth every penny. As a public company his primary responsibility is to the share holders. Not taking care of the McDonald's shareholders over the past 15 or 20 years has compounded the problems. McDonald's history is that when the stock approaches $150.00 they like to split it so our customers can buy it. Then ride it back up to its former price. It is how many employee's have made so much money. Plus, they can buy it direct without going through a broker, as can operators. The top levels of business it is all about the money. If investor's are making money they do not care how much the CEO is pulling down as long as he can keep it up. If he can do what he told Wall Street he would do in 2015 and that is the reduce the USA costs by a half a billion dollars by the end of 2018 and that half a billion dollars is paid out in dividends to investors he'll make even more money. I, for one don't care, All the more power to him. As an operator I'm looking for him to focus on the value of the company and the stores. That means positive cash flow. Especially, pre-debt cash flow. Of course, operations drives our world and changes in operational methods, equipment and other things is expensive and that is what we focus on and the regional bureaucracy drives those costs up by their incompetent BS. because they are only looking for another promotion and care less about the value of our stores. Easterbrook needs to fire 90% of them. My advice to the operators is to buy as much stock as possible and pre-pay debt as much as possible. Stop obsessing about how things once were, those times are gone, to never return. I'm told that too many operators have too much debt. I think it may be true. Every time you finance something its like drinking a glass of bleach. Long term its a killer. Stop obsessing about Easterbrooks salary or "modern & Progressive" start obsessing about making more money. Then you can start obsessing about the IRS.
Why would you take cash flow and "pre-pay debt" when I am paying 2.75% interest on debt and I can take that cash flow and earn 5% on it? I would never buy McD's stock and buy restaurants that is putting all your eggs in one basket. I don't think Easterbook and the suits exercise their options then buy more stock they invest it elsewhere and diversify. I am not against the stock or owning restaurants but for me it is pick one or the other not both.
To each his own. There are certainly many solutions depending on the particular circumstances of every individual.
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