McDonald's new CEO didn't own any shares of the company before last week. Now he owns half a million dollars' worth.
- Last week Chris Kempczinski was the US president of McDonald's and didn't own any shares in the company.
- One week later, Kempczinski became the fast-food franchise's CEO and owns half a million dollars worth of the company's stock.
- Kempczinski's new role requires him to hold $7.5 million in stock by October 2020.
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Last week Chris Kempczinski was the US president of McDonald's and didn't own any shares in the company. Fast forward one week, and now Kempczinski is the fast-food franchise's CEO and owns half a million dollars worth of the company's stock.
According to an Securities and Exchange Commission filing dated November 6, Kempczinski bought 2,580 shares at $193.81 a pop, coming to just over half a million dollars worth.
Markets Insider reported earlier this week that Kempczinski's new role requires him to hold $7.5 million worth of the company's stock by October 2020. This means over the next year, Kempczinski will need to buy at least $7 million more of stock.
The new CEO's pay is also due to getting a bump - to $1.25 million dollars a year, with a 170% annual bonus. He won't need to pay for the $7.5 million worth of stock at once though, given his pay is far lower, instead, he can exercise the 36,800 options that he holds, which would almost foot the bill based upon the share price at the time of writing ($7.1 million).
Kempczinski rose rapidly within the company since his predecessor Steve Easterbrook was fired for having a consensual relationship with a subordinate.
Easterbrook's firing sounded alarm bells for McDonald's investors - over the past four years he has doubled the company's share price. It's stock tanked on the news of his departure, wiping $4 billion off the market cap in a single day of trading.
Watch McDonald's trade live here.