The McDonald’s execs raises has been in the planning for awhile, and was announced in it’s latest filing with the Securities and Exchange Commission. McDonald’s CEO Steve Easterbrook is set to receive an 18.2 percent increase in his base salary, to $1.3 million, according to the Sun Sentinel.
The pay raise takes effect March 1, when Easterbrook will have been in the top job for one year.
Chief Financial Officer Kevin Ozan will get a salary of $700,000, a 16.7 percent increase. Doug Goare, president of McDonald’s international lead markets, will see a 10.2 percent bump to $650,000. Those raises also take effect March 1.
The base salary for high-ranking executives is often a small portion of their overall compensation. The officers receive stock awards and perks that can include everything from insurance to use of a company jet or car. McDonald’s says Easterbrook’s target incentive plan compensation is equal to 175 percent of his base salary, or about $2.8 million. Easterbrook’s predecessor, Don Thompson, earned total compensation of about $7.3 million, but that was nearly half of what he was paid in his first year as CEO in 2012.
McDonald’s in recent months has showed signs of a turnaround starting to pay off, with its stock near an all-time high and customer traffic improving at its restaurants. The launch of all-day breakfast in October, spearheaded by Easterbrook, has been a key driver in McDonald’s growth. Last month, the Chicago-area company said its fourth-quarter earnings rose 10 percent and sales at established stores were growing at a clip that outpaced Wall Street’s expectations.
Critics see the McDonald’s execs raises as an insult to its workforce. Some complain that the company can’t afford paying their workers enough to climb out of poverty, but just happened to find millions to give to their top brass. Some critics are calling it the “golden arches with golden parachutes.”