Billionaire activist investor Carl Icahn has demanded McDonald's Corp (NYSE:MCD) make two new board appointments as he called on the fast-food giant to force its suppliers to improve their handling of pigs.
Icahn blasted McDonald's for not halting the use of gestation crates for pregnant pigs in its supply chain.
He has nominated Leslie Samuelrich and Maisie Ganzler to stand for election at the company's annual meeting in 2022, with McDonald's saying it will evaluate the nominees as it would any other board candidates.
McDonald's announced in 2012 that within 10 years it would stop doing business with pork suppliers who use gestation stalls, which prevent pregnant sows from moving about.
However, the company is now asking for a two-year extension, citing COVID delays and multiple swine disease outbreaks.
McDonald's announced in a statement that by the end of this year, 85% to 90% of its US pork supply will come from sows kept out of gestation crates; this percentage is expected to reach 100% by the end of 2024.
Icahn, who owns a very small stake in McDonald's, said he has been in discussions with the company as well as the Humane Society of the United States, mandating pork suppliers stop using gestation crates for pregnant sows.
The billionaire is also the majority owner of a company that supplies packaging for the pork and poultry industry, according to McDonald’s, which questioned why he had not also called on that company to make similar commitments.