McDonald’s Shakes Up Its Board

And earlier this year, the billionaire activist investor Carl Icahn targeted Mr. Lenny, who also leads its corporate responsibility team and Ms. Penrose, who led sustainability, over the way the company sources pork. Mr. Icahn had argued that McDonald’s had not fully lived up to its commitment to change the way in sources its pork; the chain contended that his demands were unreasonable given the current U.S. supply.

Mr. Icahn’s nominees garnered only around 1 percent of votes. And Ms. Penrose won the backing of a large majority of voting shareholders. A McDonald’s spokeswoman told the DealBook newsletter that Ms. Penrose’s departure was unrelated to that campaign. Mr. Hernandez, the board’s chairman, lauded her tenure, saying she had overseen “critical progress” on the chain’s “climate, responsible sourcing and diversity, equity and inclusion goals.” McDonald’s has not yet picked her replacement as sustainability lead.

The new directors have experience in areas that McDonald’s is looking to bulk up: Ms. Taubert, who is the worldwide chairman of pharmaceuticals at Johnson Johnson, brings a focus on global health care, with McDonald’s under pressure to serve healthier products; Mr. Capuano, Marriott’s chief executive, has ample franchisee and hospitality experience; and Ms. Weaver, Salesforce’s chief financial officer, adds digital acumen, as McDonald’s focuses on its online loyalty program.

Still, the shake-up may not appease some board critics, in particular those who have targeted Mr. Hernandez, who has served on the board since 1996 and was elected chairman in 2016. Mr. Hernandez had the lowest share of reappointment votes among sitting board members at the company’s last investor meeting, according to regulatory filings.

Article source: https://www.nytimes.com/2022/08/22/business/mcdonalds-board.html