The SEC requires companies to show the relationship between the CEO’s pay and the median pay of the company’s workers. For McDonald’s (NYSE MCD | MCD Price Prediction), that figure is 1,082 to 1, which is among the highest in the S&P 500.
To do the math, CEO Chris Kempczinski made $20,574,525 in 2025. The median pay of all McDonald’s workers was $19,020. By the way, the US poverty line for an individual is $15,960 annually. Indeed lists McDonald’s entry-level pay at $12.49 per hour.
Kempczinski’s pay was made up primarily of three factors. His base salary was $1.6 million, his stock award was valued at $8 million, and his stock options were valued at $ 8 million. Another aspect of his compensation–” In addition, this column includes the cost of the personal use of the Company’s aircraft by the CEO, which includes fuel, on-board catering, landing/handling fees, hourly maintenance costs, and crew costs attributable to personal flights and excluding fixed costs, such as pilot salaries and the cost of the aircraft.”
How did Kempczinski do last year in terms of earnings? Certainly, the figures were not spectacular. Revenue rose by 4% to $26.9 billion. EPS rose 5% to $11.95. Kempczinski did get praise for Q4 numbers. “Value meals” pushed results. As Investing.com pointed out, “McDonald’s Corporation reported fourth-quarter revenue that exceeded analyst expectations, driven by strong comparable sales growth across all segments, as the burger chain focuses on promotions and discounts to entice cost-conscious customers. “
So, Kempczinski caught the wave of “cost of living” and the low end of America’s income scale early.
As for the stock price, it rose slightly in 2025. The S&P 500 did better,
The figures raise the question of whether any CEO is worth $20 million. That will have to be left for another day
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