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

Director Jennifer L. Taubert reports acquisition of phantom stock equivalent to 106.4 shares of McDonald's common stock through a deferred compensation plan.

Summary

• On March 29, 2024, Jennifer L. Taubert, a director of McDonald's Corporation, acquired phantom stock representing 106.4 shares of common stock through the Board of Directors Deferred Compensation Plan.
• The acquisition is exempt under Rule 16b-3(d)(1) and represents deferred compensation.
• The price of the phantom stock is $281.95 per share.
• Following the transaction, Ms. Taubert beneficially owns 1,515.53 shares of phantom stock.
• Settlement of the phantom stock will occur in cash following the director's retirement or termination from the Board.
• The report was filed on April 2, 2024, by Christopher Weber, Attorney-in-fact.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, which is generally viewed neutrally to positively as it aligns management interests with shareholders.

Positives

• The acquisition of phantom stock aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan can be seen as a positive incentive for board members.

Future Outlook

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

Industry Context

Executive compensation, including phantom stock, is a common practice in publicly traded companies to align the interests of directors and executives with shareholders.

Comparison to Industry Standards

• Phantom stock plans are a fairly common form of executive compensation, used by companies like Starbucks, Nike, and Coca-Cola to incentivize long-term performance.
• The specifics of McDonald's plan, such as vesting schedules and payout terms upon retirement, would need to be compared to those of similar companies to assess its competitiveness.

Stakeholder Impact

• The acquisition of phantom stock has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.

Key Dates