McDonald's pig policy fight escalates with board nominations

Image source, Getty Images

Carl Icahn, an unhappy billionaire investor, has two nominations to its board.

A statement by the fast food giant said that Mr Icahn had proposed that two people stand for election at the annual meeting in 2022.

Mr Icahn has 200 shares in the company.

Pork is used in several products at Mcdonald's and Mr Icahn has said how the animals are reared is obscene.

The American chain used suppliers that housed pregnant pigs in small crates, which Mr Icahn argued was cruel.

Image source, Getty Images

The company said on Sunday that he had asked all McDonald's pork suppliers in the US to move to "crate-free pork" by the end of the year.

The current pork supply in the US would make this type of commitment impossible.

McDonald's promised to stop ordering pork from suppliers who put pregnant pigs in crates.

Around a third of US pork suppliers have moved to group housing systems since then, according to the firm.

It said it would get 85% to 90% of its pork from these suppliers by the end of the year.

All of the pork it buys will come from these suppliers.

The chain said that Mr Icahn was the majority owner of Viskase, which makes and supplies packaging for the pork and poultry industry.

He had not publicly called on Viskase to make similar commitments. Mr Icahn didn't respond to the request for comment.

Image source, Getty Images

According to Forbes, Mr Icahn has a net worth of $16.8 billion.

He was an adviser to former US President Donald Trump on regulatory reform.

Observers said that he is unlikely to succeed with the nominations.

Mak Yuen Teen, a professor at NUS Business School in Singapore, told the BBC that Mr. Icahn's profile means McDonald's feels a need to respond even though his stake is so small.

It seems that McDonald's has been slow in fulfilling this particular commitment. It is only now that it is being highlighted by activists.

McDonald's doesn't own sows or produce or package pork in the US, and only sources 1% of pork production.

The board would evaluate Mr Icahn's nominees as it would any other candidates.