McDonald’s Corp. said on Wednesday that it gave a nearly 11 percent raise to David Hoffmann, the president of its division that includes Asia, the Middle East and Africa.
The 10.7 percent salary increase comes as the company deals with the impact of a key supplier’s food safety issue in Asia that has disrupted sales for the world’s largest restaurant company and other chains.
Hoffmann, a longtime McDonald’s executive, became president of McDonald’s Asia/Pacific, Middle East and Africa division in July 2012.
In July 2014, a Shanghai Husi Food plant in China was shut down after a Chinese TV report showed workers picking up meat from a factory floor, as well as mixing meat beyond its expiration date. The plant, owned by Aurora-based OSI Group, had been a supplier to some of McDonald’s restaurants in China and to other major chains there, including Yum Brands.
McDonald’s performance in China, Japan and certain other markets fell significantly after the food safety issue. The markets affected represent about 10 percent of the company’s global systemwide sales. July’s same-store sales, or sales at restaurants open at least 13 months, fell 7.3 percent in the APMEA division.
The Oak Brook-based company already warned that its 2014 global sales forecast, calling for relatively flat same-store sales, was at risk of being further reduced.
Hoffmann’s annual base salary as of Dec. 31 was $515,000. In 2013, his total compensation topped $3.2 million.
Hoffmann’s salary increase was approved by the board’s compensation committee on Aug. 21 and is effective on Sept. 1, McDonald’s said.
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