Form 4: Director Dean Lloyd H Acquires Phantom Stock in McDonald's Corporation

Director Dean Lloyd H reports acquisition of phantom stock in McDonald's Corporation through a deferred compensation plan.

Summary

• Director Dean Lloyd H acquired phantom stock in McDonald's Corporation on March 31, 2025.
• The acquisition was made pursuant to the Board of Directors Deferred Compensation Plan.
• The amount of phantom stock acquired was 116.05 shares, with each share being the economic equivalent of one share of McDonald's common stock.
• The price of the phantom stock was $312.37.
• Following the transaction, Dean Lloyd H beneficially owns 14,302.11 shares of McDonald's common stock, including shares acquired through dividend reinvestment.
• Payment for the phantom stock will occur following the director's retirement date or other termination from the Board.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction related to director compensation, indicating stability and alignment of interests.

Positives

• The acquisition of phantom stock aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan is a common practice to retain and incentivize board members.

Future Outlook

The phantom stock will be settled in cash following the director's retirement or termination from the Board.

Industry Context

Deferred compensation plans, including phantom stock, are common in corporate governance to align the interests of directors with shareholders and incentivize long-term value creation. This is a standard practice among large publicly traded companies like McDonald's.

Comparison to Industry Standards

• Many companies, such as Starbucks, Coca-Cola, and PepsiCo, utilize deferred compensation plans for their directors.
• The structure of McDonald's deferred compensation plan, involving phantom stock settled in cash, is consistent with industry norms.
• The amount of phantom stock granted is likely determined based on factors such as board tenure, responsibilities, and company performance, aligning with standard practices.

Stakeholder Impact

• The acquisition of phantom stock has a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.

Key Dates

Keywords

phantom stock, deferred compensation, Form 4, McDonald's Corporation, Dean Lloyd H, director, beneficial ownership