Form 4: McDonald's Director Michael D. Hsu Reports Acquisition of Phantom Stock

Director Michael D. Hsu reports acquiring phantom stock in McDonald's Corporation through a deferred compensation plan.

Summary

• On June 28, 2024, Michael D. Hsu, a director of McDonald's Corporation, acquired phantom stock equivalent to 51.75 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 derivative security was $254.84.
• Following the transaction, Hsu beneficially owns 51.75 derivative securities.
• Hsu also indirectly owns 89 shares of common stock through a trust.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and alignment of interests. There are no indications of negative events or concerns.

Positives

• The acquisition of phantom stock reflects continued alignment of the director's interests with the company's performance.
• The deferred compensation plan allows directors to accumulate company stock, potentially incentivizing long-term value creation.

Future Outlook

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

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies. It provides transparency into the holdings of company insiders.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among large corporations like McDonald's to attract and retain board members.
• The structure of McDonald's deferred compensation plan, which settles in cash, is similar to those offered by other companies such as Starbucks and Coca-Cola.

Stakeholder Impact

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

Key Dates