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 The demand from CtW comes two weeks after McDonald's announced that
Chief Brand Officer Steve Easterbrook would replace Don Thompson in
the top job on March 1 and as unions have been seeking to organize
fast-food workers and raise wages. The union pension funds that CtW
advises hold a small percentage of McDonald's outstanding shares
that are worth $268 million.
CtW Executive Director Dieter Waizenegger, in a letter addressed to
board Chairman Andrew McKenna and Governance Committee Chairman
Miles White, said the replacement of Thompson fell short of what is
required to fix the world's biggest restaurant chain by revenue.
"Returning McDonald's Corp to a path of long-term, profitable growth
requires that Mr. Steven Easterbrook's appointment as CEO is
followed by a robust refreshment of the board's membership and
leadership," Waizenegger wrote in the letter, which was obtained by
Reuters.
McDonald's did not immediately respond to requests for comment.
McDonald's, which recently reported one of its worst years in
decades, has suffered eight straight months of worldwide
same-restaurant sales declines. It is editing bloated menus,
experimenting with technology and revamping its advertising to
appeal to diners, who increasingly are demanding fresher, healthier
food.
McDonald's board, which consists of many long-term and Chicago-area
directors, has failed to evolve with the global company's changing
circumstances, Waizenegger said.
"We believe it is critical for McDonald's to have strong,
independent board leadership. Fresh eyes are essential," said
Waizenegger. He took particular aim at McKenna, an octogenarian who
has been McDonald's non-executive chairman since April 2004 and a
director since 1991.
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While Waizenegger conceded that the recent addition of Google Inc
executive Margo Georgiadis to the McDonald's board was a positive,
he called on the company to announce plans that include a board
succession strategy "that will, by the time of the annual
shareholder meeting, have prompted both board arrivals and
departures."
CtW, which advises funds holding nearly 3 million McDonald's shares,
unsuccessfully lobbied investors at last year's annual meeting to
vote against the pay package for CEO Thompson.
Some unions have helped organize fast-food workers in a nationwide
campaign that seeks to roughly double their hourly wage to $15.
Protesters involved with that campaign have targeted McDonald's and
other large companies.
Stock in McDonald's, which has lagged key rivals and major indices,
closed at $95.65 on Friday, down almost 8 percent from its 52-week
high of $103.78.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Lisa
Shumaker)
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