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McDonald’s CEO Steve Easterbrook got a big raise last year.
Easterbrook received $15.4 million in total compensation in 2016, a 94-percent increase from 2015, when he received $7.9 million as chief executive of the world’s largest restaurant chain, according to federal securities filings.
The pay package includes $1.3 million in salary, $5.1 million in stock awards, $3.9 million in option awards, and $4.6 million in incentive plan compensation. He also received $523,665 in “other compensation,” which includes contributions to his retirement plan and other benefits, as well as personal use of the company aircraft.
Easterbrook’s payday was the largest for a McDonald’s CEO in seven years, since Jim Skinner received $17.6 million in 2009. The largest pay package Easterbrook’s predecessor Don Thompson received was $13.8 million in 2012.
Other McDonald’s executives also received pay raises, including CFO Kevin Ozan, whose pay more than doubled, to $4.4 million, and chief restaurant officer Doug Goare, whose pay increased to $4.8 million, from $3.3 million the previous year.
The highest paid executive after Easterbrook was Pete Bensen, who retired as chief administrative officer last year. He was paid $5.9 million, a raise from $4 million in 2015.
In some cases, part of the raise could be attributed to the fact that the executives served full years in their new positions. Ozan became CFO in March 2015, when Easterbrook also assumed his position.
The raises also came as McDonald’s improved its business last year, following years of weakness in the U.S. and in many key markets around the world. McDonald’s operating income increased 8 percent last year, and net income increased 3 percent, despite a decline in revenue of 3 percent. Earnings per share for the year increased 13 percent.
Full-year same-store sales in 2016 increased 3.8 percent worldwide, and although sales stumbled during the fourth quarter in its key U.S. market, McDonald’s has made numerous changes to win back customers.
McDonald’s stock was up 3 percent in 2016.
The chain is selling company units to franchisees, and is targeting 5-percent company ownership by next year. McDonald’s has also overhauled much of its management, including hiring of Chris Kempczinski last year to head the U.S. market.
Contact Jonathan Maze at [email protected]
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