By Josh Beckerman
McDonald's Corp. said its former chief executive will receive $3
million under a one-year consulting agreement, while his
replacement saw a 69% increase to his base salary.
Former CEO Don Thompson, who retired effective Sunday, will
receive two $1.5 million payments, one in September and another in
March, the company said in a filing Tuesday.
The fast-food chain, struggling amid declining sales and menu
changes, said on Jan. 28 that Mr. Thompson would step down. The
company's new CEO is Steve Easterbrook, who was previously chief
brand officer.
Mr. Easterbrook's base salary has been increased to $1.1 million
and his target annual incentive opportunity under the Target
Incentive Plan is rising to 160% of base salary from 100% of base
salary.
In other moves announced in January, Pete Bensen, former chief
financial officer, was named to the newly created role of chief
administrative officer, overseeing the company's operations. Kevin
Ozan, who was corporate controller, became chief financial
officer.
McDonald's said Tuesday that Mr. Bensen's base salary was
increased 5.6% to $950,000, while Mr. Ozan's base salary was
increased 46.3% to $600,000.
McDonald's has said its broad, complicated menu slows service,
and that it has lost touch with younger consumers, who are trading
their Big Macs for seemingly healthier, fresher options, such as
those at Chipotle Mexican Grill Inc. McDonald's also is losing
customers to sandwich rivals like Five Guys Holdings LLC and
Chick-fil-A Inc.
After the CEO change was announced, Mr. Easterbrook has said he
is an "internal activist" who plans to create a "modern,
progressive burger company," according to David Tarantino, an
analyst at Robert W. Baird & Co. who met with Mr.
Easterbrook.
McDonald's last month said its sales fell a worse-than-expected
1.8% in January amid continued weakness in Asia, though U.S. and
Europe segments showed signs of improvement.
Annie Gasparro contributed to this article.
Write to Josh Beckerman at josh.beckerman@wsj.com
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