The New York State Common Retirement Fund, Albany, has withdrawn a shareholder proposal challenging the diversity efforts of McDonald's Corp. after the company announced a proposal to make improvements.
"McDonald's has taken a real step toward protecting its workforce by agreeing to our request that it tie its top executives' compensation to the diversity of its workforce and the well-being of its employees," said Thomas P. DiNapoli, the state comptroller and sole trustee of the $247.7 billion pension fund in a Thursday news release.
"Strong human capital management policies like this are important drivers of long-term shareholder value," he added.
McDonald's reported the change in policy in a regulatory filing Thursday with the Securities and Exchange Commission.
"In addition to strong financial performance, the company believes it is important to hold executives accountable for making progress in diversity, equity and inclusion," the McDonald's 8-K filing said.
For incentive payments in 2021, executives also will be "measured on four quantitative metrics related to championing the company's core values, improving diversity representation for women and underrepresented groups, and creating a strong culture of inclusion among employees," the document said.
Mr. DiNapoli filed the pension fund's shareholder proposal in November for presentation at the company's upcoming annual meeting, the date for which hasn't been set. The pension fund owned 1.67 million shares of McDonald's stock valued at $359.2 million as of Dec. 31, 2020.