McDonalds 2004 Annual Report Download - page 5

3 MCD 2004
Dear fellow shareholders:
I am honored to be non-executive Chairman of McDonald's Corporation, a position
to which I was elected last April. I have served as a member of McDonald's Board
since 1991. Our directors are diverse and independent-
minded. We bring a wide range of experiences and per-
spectives to the boardroom.
Consistent with our belief that good corporate govern-
ance is critical to fulfilling our obligations to shareholders,
our Board has tried to be a leader in this area. We adopted
written corporate governance principles as early as 1994,
and we are committed to reviewing them at least annually,
with a view to continuous improvement.
Our primary function is management oversight. Under this umbrella is succession
planning. We've made it a key priority to identify the best talent within the Company
and to ensure they are being groomed to assume top leadership positions.
Unfortunately, our preparedness was called upon twice last year when the
McDonald's System was saddened by the untimely departures of two exceptional
CEOs. Jim Cantalupo passed away unexpectedly last April, after just 16 months
at the Company's helm. Seven months later, his successor, Charlie Bell, stepped
down due to an illness that ultimately claimed his life.
No board anticipates such tragic losses. Yet, since succession planning has long
been a priority for the McDonald's Board, we were able to act quickly. We had
capable people identified and ready to step into critical roles. And they have done
so admirably.
Jim and Charlie left a remarkable legacy—the revitalization of McDonald's. They also
left an outstanding leadership team in whom your Board has enormous confidence.
Jim Skinner, the Company's Vice Chairman and, since late November, Chief
Executive Officer, is a seasoned and talented McDonald's executive. He has led
every restaurant geography of the Company and worked closely with Jim and
Charlie in establishing McDonald's strategic direction. Jim Skinner and his team
are aligned, performance driven and accountable.
I'd like to conclude by stating the obvious: good governance, like good manage-
ment, is a journey. There always will be more that we can and will do. What is
progressive today is the norm tomorrow. So, we will continue to evolve, as we are
determined to remain a leader in fulfilling our responsibilities to you.
Very truly yours,
Andy McKenna
CHAIRMAN, SHAREHOLDER
LETTER FROM THE CHAIRMAN OF THE BOARD
BOARD OF DIRECTORS
Hall Adams, Jr.1
Edward Brennan1, 2
Robert Eckert1, 2
Enrique Hernandez, Jr.2, 3
Jeanne Jackson1
Walter Massey3
Andrew McKenna2
Chairman
Cary McMillan3
Michael Roberts
John Rogers, Jr.1
James Skinner
Anne-Marie Slaughter1
Roger Stone2, 3
Donald Lubin
Senior Advisory Director
Fred Turner
Honorary Chairman
1Compensation Committee
2Governance Committee
3Audit Committee
Andy McKenna