Form 4: McDonald's Director Jennifer L. Taubert Reports Acquisition of Phantom Stock

Director Jennifer L. Taubert reports acquiring phantom stock in McDonald's Corporation through a deferred compensation plan.

Summary

• On June 28, 2024, Jennifer L. Taubert, a director of McDonald's Corporation, acquired phantom stock equivalent to 117.72 shares of common stock.
• The acquisition was made pursuant to the Board of Directors Deferred Compensation Plan and is exempt under Rule 16b-3(d)(1).
• The phantom stock will be settled in cash following the director's retirement or termination from the Board.
• Following the transaction, Taubert beneficially owns 1,643.23 shares of McDonald's common stock, including shares acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance practices. It's a neutral event with a slightly positive implication for aligning director interests with company performance.

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 date or other termination from the Board.

Industry Context

Deferred compensation plans are a common practice for compensating directors and executives in publicly traded companies, aligning their interests with shareholder value.

Comparison to Industry Standards

• Many large corporations, such as Coca-Cola, PepsiCo, and Starbucks, utilize deferred compensation plans for their directors.
• These plans often involve the issuance of phantom stock or stock options, which vest over time and are settled in cash or stock upon retirement or termination.
• The specific terms of these plans vary, but the general purpose is to incentivize long-term performance and retain key personnel.

Stakeholder Impact

• The acquisition of phantom stock has a minimal direct impact on shareholders, employees, customers, suppliers, or creditors.
• It primarily affects the director's compensation and alignment with the company's long-term success.

Key Dates