McDonald’s (MCD) CEO sells shares after option exercises and new grant
Rhea-AI Filing Summary
McDonald's Chairman and CEO Christopher J. Kempczinski reported multiple equity transactions. He exercised options and vested equity awards into common stock, then sold 26,277 shares at $331.35 and 26,276 shares at $333.54 per share in open-market trades. Some newly acquired shares were withheld to cover tax obligations.
He also received a new award of 144,416 stock options, which vest in 25% increments on each of the first four anniversaries of the grant. Performance-based restricted stock units vested at 82.2% of an original 23,519-unit grant for the 2023–2025 performance period, with related dividend equivalent rights settling into additional shares. The filing also reflects indirect holdings through a non-qualified benefit plan and a trust for his children.
Positive
- None.
Negative
- None.
Insider Trade Summary
Exercise and sale activity reported; no spread calculated
Exercise and Sale
14 txns
Insider
Kempczinski Christopher J
Role
Chairman and CEO
Sold
52,553 shs ($17.47M)
Approx. gross sale proceeds
$17.47M
Approx. exercise cost
$6.73M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Options (Right to Buy) | 26,276 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 19,333 | $0.00 | $0.00 |
| Exercise | Dividend Equivalent Rights | 1,395 | $0.00 | $0.00 |
| Grant/Award | Options (Right to Buy) | 144,416 | $0.00 | $0.00 |
| Exercise | Common Stock | 26,276 | $128.09 | $3.37M |
| Sale | Common Stock | 26,276 | $333.54 | $8.76M |
| Exercise | Common Stock | 19,333 | $0.00 | $0.00 |
| Exercise | Common Stock | 1,395 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 9,182.5 | $327.58 | $3.01M |
| Exercise | Options (Right to Buy) | 26,277 | $0.00 | $0.00 |
| Exercise | Common Stock | 26,277 | $128.09 | $3.37M |
| Sale | Common Stock | 26,277 | $331.35 | $8.71M |
| holding | Phantom Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Options (Right to Buy) — 144,416 shares (Direct);
Restricted Stock Units — 0 shares (Direct);
Dividend Equivalent Rights — 0 shares (Direct);
Common Stock — 34,445.64 shares (Direct);
Phantom Stock — 4,986.96 shares (Indirect, Non-Qualified Benefit Plan);
Common Stock — 31,842 shares (Indirect, By Trust for children)
Footnotes (10)
- F1. This transaction was executed in multiple trades ranging from $330.00 to $332.29 per share. The price reported represents the weighted average sale price of this trade. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer, or a security holder of the issuer, full information regarding the shares sold at each separate price.
- F2. This transaction was executed in multiple trades ranging from $332.50 to $335.22 per share. The price reported represents the weighted average sale price of this trade. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer, or a security holder of the issuer, full information regarding the shares sold at each separate price.
- F3. As a result of McDonald's Corporation's (the "Company") performance against the pre-approved financial targets for the performance period of January 1, 2023 through December 31, 2025, the reporting person vested in 82.2% of the original grant of 23,519 performance-based restricted stock units ("RSUs").
- F4. Each performance-based RSU represents a right to acquire one share of the Company's common stock.
- F5. Settlement of dividend equivalent rights in connection with vested RSUs. Each dividend equivalent right is the economic equivalent of one share of the Company's common stock.
- F6. Options were granted on March 8, 2017 and became exercisable in 25% increments on the first, second, third and fourth anniversary of the grant.
- F7. Options become exercisable in 25% increments on the first, second, third and fourth anniversary dates of the grant.
- F8. Each share of phantom stock represents a right to receive the cash value of one share of the Company's common stock.
- F9. Shares of phantom stock are payable in cash following the reporting person's separation from service with the Company.
- F10. Includes shares acquired through dividend reinvestment.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What McDonald's (MCD) insider activity did Christopher Kempczinski report?
Christopher Kempczinski reported exercising stock options and vested equity awards into common stock, then selling shares in open-market trades. He also received a new grant of 144,416 stock options and reported indirect holdings through a benefit plan and a trust for his children.
What new McDonald's (MCD) equity awards did Kempczinski receive?
He received a grant of 144,416 stock options, each giving the right to buy McDonald's common stock. These options become exercisable in 25% increments on the first, second, third, and fourth anniversaries of the grant date, creating a multi-year vesting schedule.
How did McDonald’s (MCD) performance affect the CEO’s restricted stock units?
Based on McDonald’s performance against pre-approved financial targets from January 1, 2023 through December 31, 2025, 82.2% of an original grant of 23,519 performance-based restricted stock units vested. Each RSU represents a right to acquire one share of McDonald’s common stock.
What are the dividend equivalent rights mentioned in the McDonald's (MCD) Form 4?
Dividend equivalent rights are tied to the vested restricted stock units and are economically equivalent to one share of McDonald’s common stock. In this filing, they were settled in shares of common stock in connection with the vesting of the related RSUs granted to the CEO.
What indirect McDonald's (MCD) holdings does the CEO report?
He reports phantom stock units held through a non-qualified benefit plan and common stock held by a trust for his children. Each phantom stock unit represents the right to receive the cash value of one McDonald’s share, payable in cash after his separation from the company.