McDonald’s said on Thursday that it has reached equal pay in its biggest global markets and increased the diversity of its leadership as it works toward improving the diversity of its company management.
The burger giant said it now has achieved pay equality in its International Operated Markets segment, which includes some of its largest markets outside the U.S. such as the United Kingdom, Canada and Australia.
The company has also increased the representation in management. The percentage of women at the senior director level or above has increased to 41% from 37% last year, Chief People Officer Heidi Capozzi said in a system message on Thursday and shared with Restaurant Business.
McDonald’s wants 45% of its senior directors to be women by 2025 and plans to reach gender parity by 2030.
McDonald’s has also increased the percentage of senior directors who are from underrepresented groups to 30% from 29% last year. The company wants that percentage to get to 35% by 2025.
“Although this is progress in the right direction, we know there is more to do here” to reach that goal, Capozzi said. “We are dedicated to doing everything it takes to support making progress.” She noted the company plans to double down on recruitment, retention and talent development and to work across markets and functions to fill needs and share best practices.
McDonald’s has been taking more cognizant steps on diversity since 2020. It has hired Reginald Miller to be the company’s chief diversity, equity and inclusion officer. And the company plans to increase marketing spend with diverse-owned media and vowed to spend more with diverse-owned suppliers.
And the burger giant is recruiting new franchisees globally for the first time in its history in a bid to diversify its ownership base, an effort that includes a $250 million investment over five years to help with financing, among other things.
It is tying executive pay to its progress on these fronts and has started publishing its progress on diversity goals. “All officers (VP level and above) are accountable for developing strong, diverse employee talent pipelines and select officers are now accountable for helping to increase the number of new franchisees from all backgrounds,” Capozzi said.
The effort has come even as the company has faced several lawsuits, from current and former franchisees, former employees and Black-owned media, alleging various discriminatory behavior under CEO Chris Kempczinski and his predecessor, Steve Easterbrook. The company has denied those allegations and has vigorously fought the lawsuits.
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