Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Icahn nominates two members to McDonald's board to challenge pig policy

Published 02/20/2022, 04:20 PM
Updated 02/21/2022, 09:41 AM
© Reuters. FILE PHOTO: The McDonald's logo is seen outside the fast-food chain McDonald's in New York, U.S., October 22, 2019. REUTERS/Shannon Stapleton/File Photo
MCD
-
SWX
-

(Reuters) -McDonald's Corp on Sunday said Carl Icahn has nominated two members to its board of directors in an escalating fight over the treatment of pigs by the burger chain's suppliers.

The billionaire activist investor, who stated that he holds 200 shares in the company, nominated Leslie Samuelrich and Maisie Ganzler to stand for election at the 2022 annual meeting, the company said in a statement, adding that it would evaluate the nominees as it would any other board candidates.

Icahn has previously said that it is "obscene" how the animals used for McDonald's (NYSE:MCD) products are treated.

Icahn has insisted on new McDonald's commitments, including requiring all of the company's U.S. pork suppliers to move to "crate free" pork, and set specific timeframes, the company said.

Such a commitment would be impossible given the current supply "and would harm the company's shared pursuit of providing customers with high quality products at accessible prices," the statement said.

McDonald's pledged in 2012 to source pork from producers who do not use small crates to house pregnant sows. Icahn pushed for the change behind the scenes, the Wall Street Journal reported earlier this month.

"Since making this commitment, McDonald's has led the industry, and today an estimated 30%-35% of U.S. pork production has moved to group housing systems," the company's statement said.

The company expects to source 85% to 90% of its U.S. pork volumes from sows not housed in gestation crates during pregnancy by the end of 2022 and expects 100% of its U.S. pork to come from sows housed in groups during pregnancy by the end of 2024, it added.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

McDonald's also said it was "noteworthy" that Icahn, the majority owner of Viskase, a company that supplies packaging for the pork industry, "has not publicly called on Viskase to adopt commitments similar to those of McDonald's 2012 commitment." Icahn did not immediately respond to a request for comment.

McDonald's said it sources only approximately 1% of its U.S. pork production and does not own any sows, or produce or package pork in the United States.

Icahn, who became known as a corporate raider on Wall Street, was embroiled in a proxy battle with Southwest Gas (NYSE:SWX) Holdings Inc in November last year.

Latest comments

It's guys like Icahn that helped Europe become what it is today, a utopia of entitlements, privileges and subsidies and a nightmare for doing business.
Thought Icahn only had a 100 shares of MCD ? How did he obtain two board seats !? Should require a large percentage of stock to sit on a board,if the news was correct.
He can buy only 1 share and use the Media to pressure to get seats. If u have a seat, it is free money for u at the corp expense.
Icahn is a p ig. No wonder why he is trying ‘p igs live matter’
treat them humanely before they get killed? ******
Right!, ridiculous. If they are so concerned then stop eating pork.
That's important to nation.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.