CHICAGO _ A longtime McDonald's executive who resigned abruptly last week has been named the new president of Dunkin' Donuts in the U.S. and Canada.
David Hoffmann was the president of McDonald's high-growth segment, which includes countries like China and Russia. The company announced his resignation in a filing with the Securities and Exchange Commission on Wednesday.
McDonald's, headquartered in suburban Chicago, said that Hoffmann failed "to satisfy certain conditions upon his departure, including execution of a noncompete agreement." As a result, he will forfeit certain benefits, including all unvested cash and equity incentive awards, the company said in the filing.
Noncompetes are standard in the corporate world and generally prohibit employees from jumping to a competitor too soon after leaving a company.
Hoffmann will start at Dunkin' on Oct. 3. In his new role, Hoffmann will receive a base salary of $700,000 and an annual bonus up to an additional $700,000. But for fiscal year 2016, he will get a bonus payout of $1.1 million, set to be paid in March 2017. He also will be entitled to millions in company stock. Dunkin' is footing the bill for Hoffmann and his family to relocate for his new position. The doughnut chain is headquartered in Canton, Mass.
Hoffmann, a 22-year McDonald's veteran, has led the "high-growth" markets segment since it was created last year, linking together the countries where McDonald's sees the most growth potential: China, Russia, Italy, Poland, South Korea, Spain, Switzerland and the Netherlands.
Hoffmann started working at McDonald's in high school and then rejoined the company after getting an MBA from the University of Chicago through the burger chain's management training program. He has held general management positions in international markets since 2008, when he was named vice president of strategy and franchising in Japan.
McDonald's named Joseph Erlinger to replace Hoffmann as the high-growth segment's president. Erlinger has been with the world's largest burger chain for 14 years and currently serves as the unit's chief financial officer.
Late last month, McDonald's announced the departure of its U.S. president, a key architect of the company's recent transformation and 30-year company veteran. Mike Andres will remain with the company until the end of the year. McDonald's said on Aug. 2 that Chief Administrative Officer Pete Bensen would retire after nearly 20 years with the company.
