Tiffanie Boyd
MCDONALDSAbout Tiffanie Boyd
Tiffanie Boyd is Executive Vice President and Global Chief People Officer at McDonald’s, appointed effective August 19, 2024, after serving four years at the company as SVP and Chief People Officer for McDonald’s USA . Company performance context during her tenure includes 3-year average annual EPS growth of 7%, 2024 operating income growth of 1%, and 2022–2024 PRSUs vesting at 170.2% of target driven by EPS/ROIC and relative TSR at the 57th percentile versus the S&P 500 . Education and age are not disclosed in the proxy.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| McDonald's USA | SVP & Chief People Officer | 4 years at McDonald’s (as of 2024) | Led U.S. people function; promoted to Global CPO effective Aug 19, 2024 |
External Roles
Not disclosed in the proxy.
Fixed Compensation
- Base salary for executives is set based on competitive market, scope, performance, tenure, internal equity, and impact on G&A .
- The company does not use employment agreements for executives .
Performance Compensation
Annual STIP design and 2024 outcomes (Corporate)
| Metric (Weight) | Target | Actual 2024 |
|---|---|---|
| Operating Income Growth (40%) | 5.9% | 0.1% |
| Systemwide Sales Growth (30%) | 6.1% | 1.6% |
| New Restaurant Openings (15%) | 489 | 466 |
| Strategic Scorecard (15%) | Qualitative | 75% of points (11.3 of 20) |
| 2024 Corporate STIP Payout | Value |
|---|---|
| Corporate STIP payout factor | 27.6% |
STIP metrics explicitly include operating income growth, systemwide sales growth, new restaurant openings, and a strategic scorecard covering values, employee engagement, and franchising execution .
Long-term incentives (PRSU and Stock Options)
| PRSU Metric | Threshold | Target | Maximum |
|---|---|---|---|
| 3-year Compound Annual EPS Growth | 0.0% | 7.0% | 11.0% |
| 3-year Average Annualized ROIC | 16.0% | 20.0% | 24.0% |
| TSR Modifier vs S&P 500 | Effect |
|---|---|
| 0–19th percentile | -25% |
| 35th percentile | -12.5% |
| 50th percentile | 0% |
| 65th percentile | +12.5% |
| 80–100th percentile | +25% |
- 2022 PRSUs vested at 170.2% in early 2025 (EPS/ROIC above target; TSR at 57th percentile) .
- PRSUs vest at 3 years and are capped at 100% if absolute TSR is negative; overall cap 200% plus TSR modifier .
- Stock options provide value only if share price increases, vest 25% per year with a 10-year term .
Equity Ownership & Alignment
- Senior officers are subject to stock ownership and retention requirements; NEOs must hold 4x salary and CEO 6x, with retention of net shares if not on track to meet guidelines; compliance reviewed annually .
- Hedging and pledging of company stock are prohibited for executives .
- Clawback policy adopted per SEC/NYSE standards; awards can be recouped/forfeited for willful fraud or violation of restrictive covenants .
- Majority of executive pay is long-term/performance-based; double-trigger treatment for equity upon change in control; no tax gross-ups on perquisites .
Employment Terms
- Appointment as EVP and Global Chief People Officer effective August 19, 2024; previously SVP & CPO for McDonald’s USA .
- McDonald’s does not maintain executive employment agreements .
- U.S. Officer Severance Plan covers U.S.-based officers (NEOs disclosed): CEO/CFO severance equals 1.5x salary+target STIP; other participating executives 1x salary+target STIP; COBRA subsidy (18 months CEO/CFO; 12 months others); prorated STIP on actual performance; unused sabbatical and outplacement assistance; payments subject to 409A timing .
- Equity treatment on termination: options may continue vesting or extend exercisability depending on age/service; death/disability accelerate; PRSUs/RSUs vest prorata (performance required) or at target upon death/disability; forfeiture for cause .
- Equity is double-trigger under change-in-control (replacement awards; accelerate if not replaced) .
- Executives are subject to restrictive covenants; violating them can lead to forfeiture/recoupment of awards .
Investment Implications
- Pay-for-performance alignment is robust: 2024 STIP factor compressed to 27.6% amid below-target OI/SWS, but 3-year PRSU payout at 170.2% underscores long-term value orientation tied to EPS/ROIC and relative TSR .
- Strategic scorecard includes employee engagement and values—areas directly within Boyd’s remit—linking compensation to human capital execution (a lever for restaurant performance and retention) .
- Retention risk appears mitigated by severance protections, long-term equity with three-year horizons, and stock ownership/retention requirements, while hedging/pledging prohibitions reduce misalignment risk .
- Potential selling pressure typically clusters around annual vesting/option schedules (e.g., February grant cycles for NEOs), though individual grant details for Boyd are not disclosed; clawbacks and restrictive covenants elevate compliance discipline .