Paul Walsh
MCDONALDSAbout Paul Walsh
Paul Walsh (age 69) is Executive Chairman of McLaren Group Limited and has served on McDonald’s board for six years. Formerly CEO of Diageo plc and CFO at Grand Metropolitan Foods and Intercontinental Hotels, he brings deep consumer, finance and global leadership expertise; he is an independent director under NYSE standards and Company policy . He currently chairs the Corporate Responsibility Committee and sits on the Governance and Executive Committees .
Past Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| McLaren Group Limited | Executive Chairman | 2020–Present | Privately owned luxury automotive/technology group |
| Diageo plc | Chief Executive Officer | 2000–2013 | Multinational beverage company; broader food & beverage perspective |
| Compass Group PLC | Chairman | 2014–2020 | Leading food service/support services company |
| Bespoke Capital Partners LLC | Operating Partner | 2016–2021 | Investment company |
| L.E.K. Consulting | Advisor | 2014–Present | Global strategy consulting firm |
| TPG Capital LLP | Advisor | 2014–Present | Private investment firm |
| Chime Communications Limited | Advisor | 2016–Present | Marketing services company |
| Grand Metropolitan Foods; Intercontinental Hotels | Chief Financial Officer (various) | Not disclosed | Executive-level finance roles |
External Roles
| Organization | Role | Committees/Notes |
|---|---|---|
| FedEx Corporation | Director | Public company directorship |
| UPL Ltd. | Director | Public company directorship |
| Prior boards | Compass Group PLC; RM2 International, S.A.; TPG Pace Holdings Corp.; Vintage Wine Estates, Inc. | Former directorships |
Board Governance
- Committee assignments: Chair, Corporate Responsibility; Member, Governance; Member, Executive .
- Committee meeting counts (2024): Audit & Finance 8; Compensation 4; Governance 8; Corporate Responsibility 3; Executive 0 .
- Independence: All non-management directors, including Walsh, are independent; CEO is the only non-independent director .
- Board leadership: Combined Chairman/CEO with a robust Lead Independent Director role (Miles White) .
- Attendance and engagement: Board met 7 times in 2024; average director attendance 96%, each director attended at least 75%; all directors elected in 2024 attended the virtual annual meeting . Executive sessions are held regularly, including before/after Board meetings and at committees .
- Outside board service policy: Directors may not serve on more than three other public company boards (in addition to MCD); Walsh currently serves on two (FedEx, UPL), within policy .
Fixed Compensation
| Component | Amount | Notes |
|---|---|---|
| Annual cash retainer (Directors’ program) | $120,000 | Standard non-management director retainer |
| Committee chair fee (Corporate Responsibility) | $25,000 | Chair fees for Compensation, Governance, Corporate Responsibility; Audit Chair is $30,000 |
| Charitable match | Up to $10,000 | Company matches director donations to eligible organizations |
| 2024 Director Compensation (Walsh) | Amount ($) |
|---|---|
| Fees Earned or Paid in Cash | $145,000 |
| Stock Awards (common stock equivalent units) | $203,060 |
| All Other Compensation (charitable match) | $10,000 |
| Total | $358,060 |
- Mix: Equity comprised ~57% of Walsh’s 2024 total ($203,060 of $358,060), aligning director pay with shareholder interests .
Performance Compensation
| Element | Structure | Key Terms |
|---|---|---|
| Director equity | Common stock equivalent units | Credited under the Directors’ Deferred Compensation Plan; mirrors gains/losses/dividends of MCD stock; settled in cash upon leaving the Board; directors may elect to defer cash retainers into units and choose lump sum or installments up to 15 years; elections irrevocable . |
Company performance metrics overseen by the Compensation Committee (context for governance quality):
| Metric (2024 STIP – Corporate) | Threshold | Target | Maximum |
|---|---|---|---|
| Operating Income Growth (%) | 0.0 | 5.9 | 15.9 |
| Systemwide Sales Growth (%) | 0.0 | 6.1 | 14.2 |
| New Restaurant Openings (count) | 442 | 489 | 518 |
| Metric (2024–2026 PRSUs) | Threshold | Target | Maximum |
|---|---|---|---|
| Three-Year Compound Annual EPS Growth (%) | 0.0 | 7.0 | 11.0 |
| Three-Year Avg Annualized ROIC (%) | 16.0 | 20.0 | 24.0 |
| TSR Modifier vs S&P 500 | -25% (≤19th pct) | 0% (50th pct) | +25% (80–100th pct) |
Other Directorships & Interlocks
| Potential Interlock Area | Observation |
|---|---|
| Logistics (FedEx) | McDonald’s system may use logistics providers, but the company reports no related person transactions since Jan 1, 2024 . |
| Agriculture/Chemicals (UPL Ltd.) | No related person transactions; Board policies require review/approval of any related person transactions . |
Expertise & Qualifications
- Substantial corporate leadership and consumer brand marketing experience from Diageo; executive-level finance roles (CFO) add capital markets discipline .
- International perspective (UK national based in London) and global operating experience .
- Committee leadership in sustainability and corporate responsibility aligns with brand trust, environment, human rights, and government affairs oversight .
Equity Ownership
| Holder | Common Stock (shares) | Stock Equivalents (units) | Total |
|---|---|---|---|
| Paul Walsh | 0 | 5,428 | 5,428 |
- Directors are prohibited from hedging or pledging Company stock; robust director stock ownership requirements are part of governance practices (quantitative threshold not disclosed) .
Governance Assessment
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Strengths:
- Independent status, strong attendance culture (Board average 96%; each director ≥75%), and regular executive sessions enhance oversight and independence .
- Chairing Corporate Responsibility adds direct accountability for sustainability, brand trust, human capital and government affairs; committee met three times in 2024 .
- Pay mix with majority equity units and deferral options aligns incentives with long-term shareholder interests; no perquisites >$10k .
- No related person transactions reported since Jan 1, 2024; formal policy for identifying and approving any such transactions .
-
Watch items:
- Multiple external commitments (McLaren Executive Chair plus FedEx and UPL boards) require ongoing capacity oversight; current outside board service remains within MCD limits (≤3 other boards) .
- Director equity units settle in cash post-service, which may slightly reduce direct stock ownership optics; however, hedging/pledging prohibitions and ownership requirements mitigate alignment risks .
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RED FLAGS: None disclosed regarding related party transactions, hedging/pledging, or low attendance; the Company explicitly prohibits director hedging/pledging and reported no related person transactions since 1/1/2024 .