Important reshuffling in McDonald's board of directors

Despite an increase in sales reported last month, McDonald's, as well as many other companies, is facing the consequences of the inflation pressure and growing interest rates affecting consumer activity and behavior all over the world. These circumstances, combined with the company’s recent difficulties in relations with their franchisees, have led to noticeable changes in the board of directors. The internal pressure coming from some shareholders, who voted against two board members last year, might also have certain influence on the recent reshuffle.

This Monday, August 22, McDonald's representatives announced major changes in its board of directors. The most significant shift is associated with a departure of Sheila Penrose, a sustainability lead, who had worked for 15 years for the company. Three new executives were also appointed, with Jennifer Taubert, Anthony Capuano, and Amy Weaver joining the board.

The key characteristic of the new executives is having relevant experiences in the fields McDonald’s is currently interested in. Jennifer Taubert, for example, as a chairman of pharmaceuticals at Johnson & Johnson, has been focusing on healthcare issues, which reflects the need for McDonald’s to offer healthier meals. Capuano, in his turn, is experienced in working with franchisees and in the hospitality sphere, being a Marriott’s C.E.O. Weaver’s background as Salesforce’s C.F.O. and her being insightful on digital sphere are important for sustaining the company’s online loyalty program.

Concerning Penrose’s leaving, it will probably rise certain discussions on Wall Street connected with a recent campaign aimed at removing her and one more director, Richard Lenny, from their positions. The campaign, led by Carl Ichen, was started in spring, but Ichen’s attempts eventually failed. Penrose was supported by more than 90% of voting shareholders, while Ichen only got 1% of votes.

According to DealBook information received from the company’s representatives, the retirement of Sheila Penrose has no connection with the events of spring. Enrique Hernandez Jr., a chairman at McDonald’s, has praised her work as a sustainability lead, emphasizing her supervising over the “critical progress” in such areas as “climate, responsible sourcing and diversity, equity and inclusion goals.” The company hasn’t yet appointed anyone to replace Penrose.