McDonald’s CEO Nets Millions In Options Gain (MCD)

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By Douglas A. McIntyre Updated Published
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McDonald’s Corp. (NYSE: MCD) had a substantial insider sale today that may catch some eyes.  Chief Executive Officer Jim Skinner unloaded some 150,000 shares via exercised stock options.  Insider sales usually are not a red flag at a company like McDonald’s, but the size here would fit the screen for most CEO and Insider Selling searches that might merit a closer look.

The full SEC Filing shows that the exercise price was listed as $29.43, and the weighted average sale price was listed as $53.5583.

The exercise was more than $4.4145 million and the sale was a total of $8.033 million. That will generate a pre-tax profit of $3,619,245.00.  Maybe for a CEO in today’s world that is just a line item.  He’s also not a CEO that has to answer about any government support.

At $2.99 per Big Mac, it looks like Skinner’s equivalent pre-tax option gains could equate to more than 1.2 million of the sandwiches  And that is before any company discounts.  He still about 189,693 in direct shares and another 80,722 in indirect ownership.

JON C. OGG

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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