Day 005 - 04 Jul 94 - Page 07

     
     1   MR. MORRIS:  Does that depend on the productivity or profits?
              A.  Not necessarily.
     2
         Q.   Or performance?
     3        A.  The overall performance, achievement of goals and
              objectives, the part they played in building the
     4        organisation over time to an operationally efficient one.
 
     5   Q.   Those payments, are we talking about substantial payments
              of more than £100,000?
     6        A.   To whom?  The British people, the British officers?
              No.  I would have said something smaller than 10 to 12,000
     7        back in that time frame, probably under five in most
              cases, but I am going from memory.  I do not have the
     8        figures in front of me.
 
     9   Q.   So for the US members of the board, do any of them get
              bonuses of more than $100,000?
    10        A.  I am sorry, the US members?  Which boards?
 
    Q.   The UK board?
              A.  No, not in that time frame for sure.  $100,000, no.
    12
         Q.   Your position in this country, obviously you are at the
    13        top?
              A.  I run the UK organisation, yes.  I oversee a large
    14        piece of northern Europe.
 
    15   Q.   You are ultimately responsible for everything that occurs
              in the company?
    16        A.  Yes.
 
    17   Q.   Broadly?
              A.  More than broadly -- very precisely.
    18
         Q.   Precisely.  How do you make sure that you know everything
    19        that is going on?  When I say "everything", I do not mean
              all the minute routine matters, but how do you organise
    20        that information so that you know what is going on in the
              company?
         A.  Well, over the years, each calendar year, myself and
              the management group of McDonald's would sit and put
    22        together a plan composed of goals and objectives,
              operational goals, marketing goals, financial goals,
    23        development goals.
 
    24        We would write then down on a piece of paper and each
              player, each officer, in charge of the functions of the
    25        company would then discuss with me and the other members
              of the group how the various functions in inter-related. 
    26        We would come up with a final plan.  We would have that as 
              a reference document throughout the year.  We would 
    27        measure our activity against what we said we were planning
              to do.
    28
              This process was taken right down to restaurant level
    29        where managers' and supervisors of restaurants would put
              together financial operational plans for their stores
    30        which individually would be collated and then totalled up
              to form the overall financial package at restaurant