mwswi

McDonald's: Safety in Gold - or in Golden Arches?

In support of the author's column, it should also be noted that McDonald's CEO, James Skinner, recently purchased an additional 20,000 shares of MCD at $55.00 for a total investment of $1.1 million (10/23/08 purchase date). This increased his overall holdings to 236,700 shares of MCD. The buy was the first for Skinner in at least five years.

Under the terms of McDonald's stock ownership guidelines, Skinner is expected to hold 6 times his annual base salary in shares, or $7.65 million in stock. He exceeded the ownership guidelines prior to his recent purchase and presently owns more than $12.55 million in shares, excluding unvested restricted stock, phantom stock, and options.

When you take into account McDonald's results and Skinner's optimism in the face of an obviously deteriorating economy, it's hard to ignore the largest insider purchase at the company in more than five years. A company lifer, Skinner is now more financially committed to the business than ever before.

Sources: Morningstar, Street Insider.com, finance.paidcontent.or... and Mark Skousen's report at StockAdvisors.com