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

McDonald's director Michael Hsu acquired phantom stock equivalent to 432.8 common shares through a deferred compensation plan.

Summary

• Michael Hsu, a director at McDonald's Corporation, acquired phantom stock equivalent to 432.8 common shares on December 31, 2024.
• This acquisition was made through the Board of Directors Deferred Compensation Plan.
• The phantom stock will be settled in cash following Mr. Hsu's retirement or termination from the board.
• The price of the phantom stock was $289.89 per share.
• Mr. Hsu now beneficially owns 687.76 phantom stock units, including shares acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The acquisition of phantom stock is a positive sign of alignment with the company's long-term 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 for retaining and incentivizing board members.

Future Outlook

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

Industry Context

Deferred compensation plans using phantom stock are a common practice for compensating board members in large public companies, aligning their interests with the long-term performance of the company.

Comparison to Industry Standards

• Many large public 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 or upon retirement, aligning director compensation with long-term shareholder value.
• The specific terms of these plans, such as vesting schedules and settlement methods, can vary between companies, but the general principle of deferred compensation is widely adopted.

Stakeholder Impact

• The acquisition of phantom stock aligns the director's interests with the long-term performance of the company, which is beneficial for shareholders.
• The deferred compensation plan is a common practice for retaining and incentivizing board members, which is beneficial for the company.

Key Dates

Keywords

phantom stock, deferred compensation, director, Mcdonald's, insider trading, equity, compensation