By Annie Gasparro
A McDonald's Corp. shareholder group called for changes to the
burger giant's long-tenured board of directors, including Chairman
Andrew McKenna, because of the company's ongoing sales woes.
CtW Investment Group, which manages pension funds that hold
about 0.2% of McDonald's shares, wrote a letter to the company
Friday demanding a "robust refreshment of the board's membership
and leadership."
McDonald's is in the midst of one of its worst sales slumps in a
decade, in part, analysts and executives say, because it has lost
touch with many younger consumers. Last month, it announced the
surprise retirement of Chief Executive Don Thompson after nearly 25
years at the company but less than three in the top job. It said
company veteran Steve Easterbrook would replace him on March 1 as
CEO and board member.
Most of McDonald's 14 current directors have been on the board
for more than a decade. Mr. McKenna became a director in 1991, and
became non-executive chairman in 2004.
"There's no diversity among the board members in terms of their
experiences and backgrounds," CtW Executive Director Dieter
Waizenegger said in an interview. He said naming a new CEO, and the
board's election last month of Google Inc. executive Margo
Georgiadis as a new member, were positive steps, but that the board
needs more new voices and should disclose its succession plan.
A McDonald's spokeswoman didn't immediately respond to a request
for comment.
Write to Annie Gasparro at annie.gasparro@wsj.com
Access Investor Kit for McDonald's Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US5801351017
Subscribe to WSJ: http://online.wsj.com?mod=djnwires