Walter E. Massey.

• Author: Porter, Martin
• Position: Corporate director of McDonald's Corp.

Its commitment to diversity sways a leader in education and science in joining the board of the Golden Arches.

Soon after Dr. Walter E. Massey received an invitation from McDonald's Corp. to join its board, he read a negative cover story in a March issue of Business Week magazine that made him think twice about the offer. Despite massive expansion, the seven-page article stated, the Golden Arches has been unable to grow beyond its basic formula of burgers and fries, causing a precipitous decline in the restaurant's share of U.S. fast-food sales. At fault, continued the article, is McDonald's archaic management style and failure to anticipate consumer tastes: The last successful menu item was launched in 1983 with the Chicken McNugget, while other experimental additions to the menu like pizza and reggie burgers flopped. The article even criticized McDonald's board practices, claiming it was laden with too many insiders, cross- directorships, and executives whose companies do business with McDonald's.

After considering the offer at great length, what ultimately swayed the Morehouse College president to accept was the encouragement he received from friends who ran other businesses and several Morehouse alumni who worked at McDonald's as executives, franchisees, and suppliers. They all emphasized the company's efforts and commitment to minority business development.

McDonald's Chairman Michael Quinlan, in an interview with DIRECTORS & BOARDS on Dr. Massey's election to the board, echoes this view: "We're a company that has been a leader in corporate diversity for many years," he says. "We pride ourselves in that regard in our employee base, our directors, our officer base, our franchisee base, and, of course, our customer base."

According to the company's latest annual report, its 16-member board has one female and two male minorities (not yet including Dr. Massey). There are 15 minority men and 22 women executive officers. Women and minorities hold more than 66% of middle-management positions and account for more than 28% of franchisees.

Quinlan raves about Dr. Massey, welcoming his experience in education and corporate governance, and his work in diversity issues. "We're excited about the market basket of skills Dr. Massey brings, and he's excited about the prospects for the future of McDonald's and the reputation we've established over the years."

Quinlan met Dr. Massey for the first time at a McDonald's nominating committee meeting. "I've...