Form 4: McDonald's Director Hsu Acquires Phantom Stock Through Deferred Compensation Plan

Director Michael D. Hsu acquired phantom stock in McDonald's Corporation through a deferred compensation plan, as reported in a recent SEC filing.

Summary

• On March 31, 2025, Michael D. Hsu, a director of McDonald's Corporation, acquired phantom stock equivalent to 96.04 shares of common stock.
• The acquisition was made through the Board of Directors Deferred Compensation Plan and is exempt under Rule 16b-3(d)(1).
• The price of the phantom stock was $312.37 per share.
• Following the transaction, Hsu directly owns 787.79 derivative securities.
• Hsu also indirectly owns 89 shares of common stock through a trust.
• Payment for the phantom stock will occur after Hsu's retirement or termination from the Board.
• The report was filed on April 2, 2025.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of deferred compensation plans is a common and accepted practice.

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

Payment of phantom stock will occur following the Director's retirement date or other termination from the Board.

Industry Context

Deferred compensation plans are a common practice among publicly traded companies to attract and retain board members and align their interests with those of shareholders.

Comparison to Industry Standards

• Many companies, such as Starbucks, Yum! Brands, and Restaurant Brands International, use similar deferred compensation plans for their directors.
• These plans often involve granting stock options, restricted stock units, or phantom stock to align director compensation with company performance.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.

Key Dates

Keywords

phantom stock, director, deferred compensation, Form 4, MCD, McDonald's, Hsu, beneficial ownership