McDonald's CEO Chris Kempczinski received more than $10.8 million in compensation in 2020, despite the company missing performance targets, CNBC reported citing a company filing. In 2023, the company has temporarily closed all its offices in the US this week as it prepares to inform its corporate employees about a fresh round of layoffs, the Wall Streets Journal reported.
In an internal email last week to U.S. employees and some international staff, the Chicago-based fast-food chain asked them to work from home from Monday through Wednesday so it can deliver staffing decisions virtually, the report said. It is unclear how many employees will be laid off.
In 2020, Kempczinski's base salary was $963,500 (over Rs. 7.93 crores). He also received $383,000 (over Rs 3.15 crore) as other forms of compensation, like the use of the company's private plane, CNBC reported.
In April 2020, the executives of the fast-food giants took a pay cut due to the coronavirus pandemic but the salaries were reinstated in October as the company's sales recovered.
His base salary without the pay cut would have been $1.25 million.
McDonald's executives did not receive any performance-based bonuses because the company fell short of goals for growth in operating income, systemwide sales and same-store sales. Kempczinski could have netted another $4.25 million. The chain's total CEO compensation in 2019 ended up topping $18 million, CNBC reported.
Mr Kempczinski's 2020 pay was 1,189 times higher than that of the median McDonald's employee, who made $9,124 that year, based on company estimates.
The fast-food chain said in January that it would review corporate staffing levels as part of an updated business strategy, which could lead to layoffs in some areas and expansion in others.
McDonald's is expected to begin announcing key decisions by Monday.
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