Gillian McDonald
MCDONALDSAbout Gillian McDonald
Gillian (Jill) McDonald is a named executive officer of McDonald’s, previously serving as Executive Vice President – President, International Operated Markets (IOM), and appointed Executive Vice President – Global Chief Restaurant Experience Officer effective May 1, 2025 . She has served McDonald’s for over ten years . Company performance outcomes tied to executive pay include a Corporate STIP payout factor of 27.6% for 2024 and a 170.2% payout for PRSUs granted in 2022, with three-year average annual EPS growth of 7%—all reinforcing pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| McDonald’s Corporation | EVP & President, International Operated Markets (IOM) | Served through May 1, 2025; start date not disclosed | Led IOM segment performance; transitioned role in company’s senior leadership refresh |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Annual Base Salary (earned) ($) | 808,365 | 889,320 |
| Annual Base Salary (as of 12/31) ($) | 808,365 (GBP 650,000) | 901,000 (GBP 705,000) |
| Target STIP (% of Salary) | 120% | 120% |
| Stock Awards – Grant Date Fair Value ($) | 4,125,589 | 1,875,265 |
| Option Awards – Grant Date Fair Value ($) | 2,125,031 | 1,875,058 |
| All Other Compensation ($) | 145,288 | 151,514 |
| Total Compensation ($) | 8,500,924 | 5,049,967 |
| Long-Term Incentive Target Award Value ($) | 2023 | 2024 |
|---|---|---|
| Target LTI Award | 2,750,000 | 3,750,000 |
Performance Compensation
| STIP (Annual Bonus) – 2024 Specifics | Metric Weighting | Target | Actual | Payout |
|---|---|---|---|---|
| IOM Team Factor | 63.75% | — | 13.5 performance factor | Contributed to payout |
| Corporate Team Factor | 21.25% | — | 19.2 performance factor | Contributed to payout |
| Strategic Scorecard | 15% | 0–20 points | 75% (11.3 points) | Contributed to payout |
| Target STIP ($) | — | 1,081,243 | — | — |
| Actual STIP ($) | — | — | — | 258,810 |
| Payment as % of Target | — | — | — | 23.9% |
| STIP Design – Metric Weighting | 2024 Design | 2025 TIP Design |
|---|---|---|
| Operating Income Growth | Included; part of 85% financial metrics | 40% |
| Systemwide Sales Growth | Included; part of 85% financial metrics | 30% |
| New Restaurant Openings | Included; part of 85% financial metrics | 15% |
| Strategic Scorecard | 15% | 15% |
| Payout Range | Capped; payout varies by performance | 0–200% of target |
| PRSUs (Long-Term Incentive) – 2024–2026 Design | Weighting | Threshold | Target | Maximum |
|---|---|---|---|---|
| EPS Growth (3-year CAGR) | 75% | 0.0% | 7.0% | 11.0% |
| ROIC (3-year avg annualized) | 25% | 16.0% | 20.0% | 24.0% |
| Relative TSR Modifier (vs S&P 500) | ± up to 25 percentage points | — | — | — |
| Negative Absolute TSR Cap | Caps payout at 100% if absolute TSR is negative | — | — | — |
| Maximum Payout | 200% + TSR modifier | — | — | — |
| Realized & Vested – FY 2024 | Quantity | Value ($) |
|---|---|---|
| Options Exercised | 0 | 0 |
| Stock Awards Vested | 3,842 shares | 1,103,077 |
| PRSU Vesting Schedule – Unvested | Grant Date | Vest Date | Units |
|---|---|---|---|
| 2023 PRSUs | 2/13/2023 | 2/13/2026 | 8,055 |
| 2024 PRSUs | 2/12/2024 | 2/12/2027 | 6,298 |
Equity Ownership & Alignment
- Stock ownership guidelines: Other NEOs required to hold 4x salary; executives have five years to comply; retention requirements apply if not on track; all NEOs currently in compliance . Hedging and pledging of Company stock are prohibited .
| Beneficial Ownership | 2024 | 2025 |
|---|---|---|
| Common Stock Held (units) | 11,813 | 31,510 |
| Outstanding Equity Awards at 12/31/2024 | Details | Units / Values |
|---|---|---|
| Stock Options – Exercisable | $266.20 strike; exp. 2/13/2033 | 9,777 |
| Stock Options – Unexercisable | $266.20 strike; exp. 2/13/2033 | 29,322 |
| Stock Options – Unexercisable | $289.44 strike; exp. 2/12/2034 | 31,345 |
| RSUs – Not Vested | Market value at $289.89 on 12/31/24 | 3,935 units; $1,140,717 |
| PRSUs – Unearned (Not Vested) | Market/payout value | 14,353 units; $4,160,791 |
| Option Vesting Mechanics | 25% per year; 10-year term | — |
Employment Terms
- Severance: Not covered by U.S. Severance Plan; entitled to 26 weeks’ advanced written notice (or payment in lieu) except for gross or persistent misconduct per offer letter .
- Termination treatment and values (12/31/2024 reference):
- Options value: Retirement $701,691; Without “cause” $705,217 .
- PRSU value (target basis): Retirement $4,388,645; Without “cause” $3,143,277 .
- RSUs pro rata value (without “cause”): $1,093,175 .
- Change-in-control: Company has no change-in-control agreements; double-trigger equity provisions apply; illustrative accelerated equity values (12/31/2024 close price basis): Options $708,744; RSUs (including PRSUs at target) $5,301,508; Total $6,010,252 .
Compensation Structure Analysis
- Peer group revision: Added The Walt Disney Company; removed Johnson & Johnson and Walgreens Boots Alliance for 2025 compensation decisions .
- Consultant: Compensation Committee retains Semler Brossy; affirmed independent in Oct 2024; management may not engage the Committee’s consultant .
- Mix and design: 2024 long-term incentives remained 50% PRSUs / 50% options , with Ms. McDonald’s target LTI increased from $2.75M (2023) to $3.75M (2024) to maintain competitiveness .
- Most important performance measures linking pay: EPS Growth, Systemwide Sales Growth, Operating Income Growth, ROIC, Relative TSR, Share Price Increase .
Say-on-Pay & Shareholder Feedback
- Shareholders continued to show strong support for executive compensation in the 2024 annual meeting; Committee considered voting results and ongoing shareholder dialogue in its program review .
Investment Implications
- Alignment: Strong multi-year PRSU payout (170.2% for 2022 grants) and strict ownership/retention rules indicate high alignment with shareholder value creation; hedging/pledging prohibited reduces misalignment risks .
- Near-term bonus sensitivity: 2024 STIP payout at 23.9% of target for Ms. McDonald (with low corporate factor) underscores sensitivity to operating income/systemwide sales—watch these metrics for bonus-driven incentives and potential sentiment signals .
- Vesting/selling pressure: Scheduled PRSU vestings (2026, 2027), prior RSU vest events (Feb 2024/2025), and significant unexercisable option tranches could create periodic liquidity windows; note no option exercises in 2024 and stock vest value realized of ~$1.1M .
- Role transition: Move to Global Chief Restaurant Experience Officer (effective May 1, 2025) shifts accountability to operational experience quality—monitor customer experience KPIs and strategic scorecard outcomes affecting annual bonus .