Form 4: McDonald's Director Catherine Engelbert Reports Phantom Stock Acquisition

Director Catherine Engelbert acquired phantom stock in McDonald's Corporation, equivalent to 700.47 common shares, as part of a deferred compensation plan.

Summary

• Catherine Engelbert, a director at McDonald's Corporation, reported the acquisition of phantom stock on December 31, 2024.
• The phantom stock acquisition is equivalent to 700.47 shares of McDonald's common stock.
• This transaction was part of the Directors' Deferred Compensation Plan.
• The phantom stock will be settled in cash following the director's retirement or termination from the board.
• The price of the phantom stock was $289.89 per share.
• Following the transaction, Ms. Engelbert beneficially owns 3,910.99 shares of phantom stock, including shares acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is a normal part of corporate governance. There are no indications of any negative or unusual activity.

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 for retaining and incentivizing board members.

Future Outlook

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

Industry Context

The use of phantom stock and deferred compensation plans is a common practice among publicly traded companies to align the interests of directors with shareholders.

Comparison to Industry Standards

• Many large publicly traded companies, such as Starbucks, Yum! Brands, and Chipotle, use similar deferred compensation plans for their directors.
• These plans often include phantom stock or restricted stock units that vest over time, aligning director compensation with long-term company performance.
• The specific terms of these plans can vary, but the general structure of deferred compensation is a common practice.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with long-term company performance.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

phantom stock, director, deferred compensation, McDonald's, equity, insider trading, SEC Form 4