After posting higher than expected performance of the company, the CEO has finally received his due credit.
As an appreciation of bringing the Golden Arches back from the vortex of slumping performance, the McDonald's Inc. has humbly declared a pretty high salary raise of 18% for the man behind the company's boosted performance, CEO Steve Easterbrook. Easterbrook took the realm of the trembling company almost a year ago and then with his unmatchable competitive leadership allowed the company to post its best U.S. quarterly sales figures, something which the fast food restaurant chain has been struggling for the last four years.
The regulatory filing has revealed that, from the upcoming March, the CEO will be entitled to a salary of $1.3 million along with an additional 175% salary raise subject to the company's boastful operating earnings for the year 2016. The Wall Street Journal has reported that the proposed exorbitant raise can pull the CEO's salary up to $3 million.
For over three years the Oak Brook, Illinois firm has been witnessing the major slump in its company sales as the consumers were getting more and more attracted to new rivals like Whole Foods and Chipotle. The rivals offered more fresh and healthy food items. Therefore when Mr. Easterbrook joined the McDonald's family he quickly worked out a turnaround plan to surge up company's performance.
The CEO brought in few changes and innovations in the menu which was targeted to attract more customers towards the restaurants. The chief step carried out by the company was to shift more focus on its core products -burgers and fries. It also flipped away items like snack wraps which were less popular among the customers. For making the menu items healthier, the $106 billion organization also diverted its focus from margarine to butter. The latest addition in the menu by the name of buttermilk crispy chicken sandwich has been massive hit among the customers. Introduced in last year's second half, the sandwich is in demand. Last September, Egg McMuffin hit the counter of the U.S.'s largest burger chain with a change of ingredient from margarine to butter. CEO Easterbrook expressed: "We transitioned back to the original recipe for our Egg McMuffin, using butter instead of margarine to deliver an even tastier sandwich," said Mr. Easterbrook.
Moreover, few changes in the serving and cooking techniques have been brought in by the company to give the customers the best experience. The techniques included a little longer toasting of the burger burn along with more juicier patties.
The inclusion of all-day breakfast menu items enable d the company to surge up its same-store sales, for the third quarter of fiscal year 2015 (3QFY15) by 0.9%. For the passage of two years, this increase summed up to be the first positive comparative sales. Moreover, in China, the comparative sales boosted up by 26.8% in the same quarter. The results in China have been commendable after the restaurants had a major blow because of few food-safety scandals that had been erupted a few years back.
In the similar fashion, for the fourth quarter, last month, the American fast food giant posted a 5% increase in its global same-store sales. Meanwhile, the exclusive sales in U.S. went up by 5.7%. Mr. Easterbrook said: "The progress we have made in a short amount of time gives me confidence we're making the right moves to turn around our business and reposition McDonald's as a modern, progressive burger company." In the near future, MCD is more likely to perform better and better.