Another proposal contained in the proxy statement for the company's May 17 annual meeting would tie executive compensation to McDonald's performance as a socially responsible corporation.

McDonald's opposes both shareholder proposals, according to the proxy, which was filed Thursday with the Securities and Exchange Commission. The company contends that its compensation plans already include social responsibility measures, and that its policies and practices regarding China exceed those being advocated.

John Harrington, president of Harrington Investments Inc., Napa, Calif., submitted the China proposal on behalf of his daughter, a McDonald's spokeswoman said. Harrington holds 200 McDonald's shares.

His proposal urges the company to adopt 11 principles on human and labor rights standards for China. They include assuring that the company's facilities and suppliers there adhere to decent wages and working conditions, the right of workers to form unions, and a prohibition on child labor.

The other proposal says that social as well as financial criteria should be factors in determining executive pay packages. That measure is being co-sponsored by Domini Social Investments LLC, New York City, which holds 391,300 McDonald's shares; Missionary Oblates of Mary Immaculate, Washington, D.C., 11,600 shares; and the General Board of Pension and Health Benefits of the United Methodist Church, Evanston, Ill., 460,156 shares.

McDonald's has about 1.3 billion shares outstanding.  
 
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