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FP/wire say SEC allows franchisee-rights vote on ballot

2017-03-20 07:04 ET - In the News

Also In the News (C-QSR) Restaurant Brands International Inc

The Financial Post reports in its Monday edition that McDonald's Corp. investors will soon vote on whether to give the franchisees who operate most of the fast-food chain's restaurants the opportunity to elect a board member. A Reuters dispatch to proposal, which faces long odds of success, is believed to be the first of its kind and has attracted great interest among franchise companies, which includes not only restaurants but also hotels and convenience stores. About 85 per cent of the company's restaurants are operated by franchisees, who pay rent and royalties to McDonald's. McDonald's long-term goal is to raise that to 95 per cent. "We think franchisees should be in the room when the company's most important decisions about operating and strategy are being made," said Maureen O'Brien at Segal Marco Advisors, which provides advice to pension plans and oversees a trust owning more than 5,000 McDonald's shares. McDonald's petitioned regulators to omit the proposal from the ballot at its upcoming shareholder meeting, but Ms. O'Brien said that the Securities and Exchange Commission rejected McDonald's request, meaning the proposal will appear on the McDonald's proxy due in the coming weeks.

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