The plan permits the grant of stock options, restricted stock, stock appreciation rights, performance units, stock bonuses and other stock-based awards. Under the plan, 64 million shares of McDonald’s were made available for future grants.
The purpose of the plan is to provide a means by which employees of McDonald’s and its subsidiaries and non-employee directors and senior directors can acquire and maintain shares of the company.
"The plan is seen to strengthen the desire of employees to continue in the service of the company and encourage shareholder and entrepreneurial perspectives through stock ownership," McDonald’s said in documents filed with the Securities and Exchange Commission.
Only qualified employees of Golden Arches may exercise the stock option and avail of the shares subject of the plan. They can buy a certain number of shares of McDonald’s at a fixed price for a fixed number of years, allowing them to benefit from possible appreciation in the value of McDonald’s stock. They will receive information describing the number of shares of McDonald’s they can purchase, the price per share, when they can exercise their option and when their option expires.
Documents showed that 434 employees of Golden Arches are entitled to the stock options.
The compensation committee of the McDonald’s board of directors determines who will receive options, the number of options granted, and the exercise price which cannot be less than the fair market value of a share on the date the option is awarded.
McDonald’s said the grant of an option is not an employment contract. Its employees are free to terminate their employment at any time and McDonald’s has the same right.
The 2001 omnibus plan will terminate on May 17, 2011 unless the board terminates it before this date.
Golden Arches is a 50-50 joint venture between Delaware-based McDonald’s Corp. and McGeorge Food Industries Inc. of businessman George Yang who also has interests in property development.
In 1981, McDonald’s opened its first store in the Philippines in Morayta in the University Belt.