McDonald's CEO earns over $10.8 million despite company missing performance targets
The bulk of McDonald's CEO Chris Kempczinski's compensation ($9.5 million) was in the form of stock and option awards
April 09, 2021 / 09:17 AM IST
Chris Kempczinski speaks about fresh beef expansion at a McDonald’s event in Oak Brook, Illinois, United States March 5, 2018. (REUTERS/Richa Naidu)
McDonald's CEO Chris Kempczinski earned more than $10.8 million as compensation in 2020 even though the company missed performance targets.
The bulk of Kempczinski's compensation ($9.5 million) was in the form of stock and option awards, CNBC reported citing a company filing.
His base salary was $963,500, and he received $383,000 as other forms of compensation, such as using the company's private plane, the news channel reported.
In April 2020, McDonald's said its executives would take pay cuts as the pandemic hurt restaurants and hotels.
Kempczinski's base salary was cut by half, but was reinstated in October as the company's sales recovered. He would have received a base salary of $1.25 million without the pay cut, the report said.
The McDonald's CEO would have earned an additional $4.25 million in 2020 with the performance-based bonus.
Since the company could not meet its goals for growth in operating income, systemwide sales and same-store sales, its executives did not receive any performance-based bonuses.
Kempczinski's 2020 pay was 1,189 times higher than the salary of the median McDonald's employee, who made $9,124 last year, CNBC reported citing company estimates.
The pay cuts and absence of performance-based bonus reduced the gap between the salaries of the executives and average employees. McDonald's total CEO compensation in 2019 topped $18 million, 1,939 times higher than what the median employee earned.