, but that doesn’t mean he’ll stop receiving paychecks.
The now-former CEO leaves with a one-year consulting deal with his former employer, one that will pay him $3 million in two installments, one in September and another next March.
By contrast, Thompson’s replacement, Steve Easterbrook, will receive a base salary this year of $1.1 million. That’s a raise of nearly 70 percent, but does not include bonuses that Easterbrook could receive, including a “Target Incentive Plan,” a bonus that will be equal to 160 percent of his salary based on the performance of the company.
According to an SEC filing, Thompson agreed to extend his non-compete with McDonald’s for 24 months. He also receives his retirement benefits from the company.
But, according to the filing, “the board recognizes Mr. Thompson’s unique skill set and therefore has decided to enter into a post-retirement consulting agreement with Mr. Thompson.” The consulting will be at the behest of Easterbrook or the board, and will “leverage Mr. Thompson’s system knowledge, relationships with important external stakeholders, influence as a leader in the corporate business community and relationships with company franchisees and suppliers …”
Thompson’s pay over the next year will actually higher than the base salary he was receiving as full-time CEO — his base salary in 2013 was $1.2 million, though his full pay that year was nearly $9.5 million.
McDonald’s stock has been on a roll since Thompson’s retirement was announced. It has increased 12.3 percent over that time. By comparison, the S&P 500 Index is up 5.3 percent over that period. The stock briefly crossed 100 yesterday before falling back down slightly today.