McDonald's gives former and new CEOs big pay bumps
McDonald's Corp. more than tripled the pay packages last year for its new CEO Don Thompson and the man he replaced, Jim Skinner.
The pay increases from the world's biggest hamburger chain were given during a challenging time for the industry.
McDonald's, based in Oak Brook, Ill., gave Thompson a package worth $13.8 million, up from the $4.1 million he received in 2011, according to a regulatory filing Friday.
Thompson, 50, had been serving as chief operating officer and took over for Skinner in July. He inherited the top post at a time when McDonald's is facing intensifying competition at home and difficult economic conditions. around the world.
Late last year, a monthly sales figure dropped for the first time in nearly a decade. The fast-food chain fired the head of its U.S. business soon after and has renewed its emphasis on its Dollar Menu and overall value.
The troubles come after a period of strong growth for McDonald's, which had managed to grow even through the recession and was a standout in the industry. The success was largely credited to the company's “Plan to Win,” which was rolled out in 2003. Under the plan, McDonald's scaled back on new stores openings, got rid of unprofitable businesses and expanded its menu items.
Skinner, who had been CEO since 2004, was among the group of executives that designed the plan.