Topic > The Case of McDonald's McDonald's Case Study

The effectiveness of a board is called into question even when board members have served together for so long. A member of the Corporate Governance Center at the University of Tennessee, Larry Fauver, pointed out that directors who serve in the same group for the same period as McKenna may not have enough distance from management to be objective. He then asked a question that raised many eyebrows among shareholders: how independent could you be towards a company after 23 years? (Kowitt, 2015) Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, also agrees with Fauver. Elson says that any time directors have relationships with each other outside of the boardroom, the bigger. Since it is a global company, McDonald's would benefit from recruiting directors with greater cultural, gender, and ethnic diversity. By involving younger members with diverse backgrounds on the board, we believe they would be able to regain their edge in the market and stay ahead of the curve. They believe that a change of CEO will not be enough to get the company back on the right track (Wohl, 2015) . After years of growth, McDonald's finally hit a rough patch in 2014. Revenue, customer visits and operating income decreased compared to the previous year. It was the first time they had seen a decline in same-store sales in over a decade. This has continued over the past five quarters, losing customers to changing tastes, an overly complicated menu and other fast casual chains like Chipotle. McDonald's responded by hiring two new healthcare-related members, trying to steer U.S. customers toward healthier, fresher foods. Lloyd Dean, 65, has been CEO of Dignity Health for the past 15 years and John Mulligan, 49, is executive vice president and CFO at Target. While Mulligan has no direct connection to Target's healthcare business, he is an active member of the Minnesota Children's Hospitals and Clinics board. On the surface, both of these hires represent added value and certainly a step forward for the McDonald's board of directors. Of course, it remains to be seen what impact these new health additions will have on McDonald's going forward (Slang,