McDonald’s (NYSE: MCD) announced Thursday that it will strive to implement more women and minorities into senior leadership positions. The company will tie executive pay to diversity goals and hopes to reach gender parity within management by 2030.
In a letter to workers, CEO Chris Kempczinski, detailed the new objectives. McDonald’s plans to boost the percentage of women in senior roles worldwide from 37% to 45% by 2025. Furthermore, it aims to increase the number of minorities in those positions from 29% to 35% by 2025 as well.
“We’re serious about holding ourselves and our leaders accountable,” Kempczinski said in the letter.
Executive vice presidents compensation will be linked to annual goals. The company’s board has approved the targets, which pertain to the top levels of the organization.
Beginning in 2021, 15% of executive bonuses will be established according to human-capital metrics. Sales and operating income gains will account for 42.5% of McDonald’s incentive plans.
Amid global protests against racism and police brutality, in July McDonald’s revealed plans to focus on diversity and inclusion. Shortly after the fast food chain hired Reginald J Miller as chief diversity officer.
McDonald’s has been involved in several lawsuits accusing it of racism. In January of 2020, two black executives sued the chain for allegedly shifting advertising away from Black consumers. Furthermore, the suit claimed that McDonald’s graded Black Franchisees’ more severely than white owned locations.
Just this week, a Black franchise operator sued the company for supposedly guiding him towards less lucrative restaurants in lower-income, predominantly Black locations due to his race. McDonald’s replied that it had “invested significantly” in his establishments and that it “will review the complaint and respond accordingly.”
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