Chris Kempczinski’s speedy ascent to the top job at McDonald’s Corp. has left him in a slightly awkward scenario for a big-company leader: He doesn’t hold a single share within the restaurant chain.
In May, Kempczinski offered the entire stake he had gathered since he started at McDonald’s in 2015 — roughly 10,900 shares, regulatory filings present. He additionally exercised nearly 27,900 choices and liquidated that holding. The transactions netted him $4.44 million before taxes.
He still owns additional choices — a few of which he could train instantly to purchase shares at a reduction — in addition to unvested restricted shares that could possibly be cancelled beneath sure circumstances. However, he owns no common frequent inventory in response to the newest filings.
Some traders intently monitor government inventory gross sales, significantly at firms in turmoil. That stated, Kempczinski’s scant possession doesn’t essentially imply he’s pessimistic about McDonald’s prospects, and equity awards he’ll obtain as CEO will assist him in attaining the required level of ownership.
Kempczinski, 51, left Kraft Foods four years in the past and joined McDonald’s as a part of a sweeping administration shakeup. About a year later, he was tapped to run its U.S. business. On Sunday, he was promoted to CEO to succeed Stephen Easterbrook, who was fired for having a consensual relationship with a worker.
A representative for Chicago-based McDonald’s didn’t instantly respond to a request for comment.
McDonald’s, like most other large corporations, requires senior executives to own a specific amount of stock always — an investor-friendly policy meant to make sure their private fortunes are aligned with the interests of shareholders. An executive normally has just a few years to achieve the required level of ownership, generally set as a multiple of the base wage.
Prior to his promotion, Kempczinski was required to personal $2.9 million of stock — four times his $725,000 wage — by October 2020, his five-yr anniversary at McDonald’s, according to filings.