Editor’s Note MARCH 2016 VOLUME 3, No. 2 The Next Steps


1940, they could not have guessed that it would become a worldwide fast-food behemoth. But, as often happens, it was not the brothers who created today’s McDonald’s brand and took the company to its present heights. That credit goes to Ray Kroc, who offered to franchise the fast-food joints throughout the US and then bought out the brothers in 1961 for US$2.7 million. Hugely ambitious, Kroc pushed hard to make the chain a national institution. During his watch, McDonald’s went public in 1965, introduced famous ad cam- paigns such as “You deserve a break today,” introduced Ronald McDonald, the Golden Arches, the Big Mac, the Egg McMuffin and other well-known staples of the multinational’s image. In the first 15 years of this new millennium, virgin territories opened up for the hamburger giant. A McDonald’s can now be found in at least 121 middle-to-upper- income countries in the world. These include China, as well as seemingly unlikely places such as Azerbaijan and Kazakhstan. But despite such phenomenal growth, all has not been nirvana for the Golden


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Arches. There’s been an explosion of competitors as well as a customer preference for fresher food that has made things difficult for a prepackager. “While McDonald’s was still making money, its rate of revenue growth had been deteriorating,” writes Susan Smith in “A Lot on His Plate” (p. 26). It was clear someone new was needed to take the company to the next level. The company chose British-born Steve Easterbrook, former CEO of McDonald’s UK and president of McDonald’s Europe, and, at the time, global chief brand officer. Easterbrook’s goal, according to the company, is “revitalizing McDonald’s as a modern, progressive burger company delivering a contemporary customer experi- ence.” This feature looks at the challenges facing the company as Easterbrook forges tools for the new century. CPA Canada recently completed its compensation study for the profession.


According to writer Robert Colapinto’s report (“The 2015 Compensation Survey,” p. 46), the study “depicts a triple-legacy accounting profession swimming confidently … in 2014.” Colapinto notes that mean compensation for traditional and nontraditional roles rose 7%, and the median increase was 3%. “Although the profession is not expe- riencing double-digit percentage increases in salaries, its members enjoy excellent compensation and have taken on impressive roles in practice and a range of industry sectors.” I don’t have to ask readers to read this feature with care. I am sure most will.


Okey Chigbo editor


2 | CPA MAGAZINE | MARCH 2016


HEN RICHARD AND Maurice McDonald started their Bar-B-Que restaurant in


EDITOR Okey Chigbo ART DIRECTOR Bernadette Gillen ASSOCIATE ART DIRECTOR Kevin Pudsey SENIOR EDITORS Bernadette Kuncevicius, Tamar Satov ASSOCIATE EDITOR Yvette Trancoso ASSOCIATE FRENCH EDITOR Mathieu de Lajartre EDITOR, WEB EDITION Margaret Craig-Bourdin MAGAZINE WEB PRODUCER Alan Vintar EDITORIAL ASSISTANT Harriet Bruser DIRECTOR, LANGUAGE SERVICES Jane Finlayson EDITOR, PROFESSIONAL MATTERS Mara Gulens CONTRIBUTORS Taryn Abate, Yan Barcelo, Craig Bell, Mary Teresa Bitti, Dwayne Bragonier, Steve Brearton, David Descôteaux, Cathy Hutchinson, John Lorinc, David Malamed, David Trahair, Lisa van de Geyn, Karen Wensley, Trevor Wilson QUALITY REVIEW TEAM Antonella Risi, CPA, CA; Juli-Ann Gorgi, CPA, CA


PUBLISHER Nicholas Cheung, CPA, CA, CIPP/C


SALES AND MARKETING MANAGER Brian Loney, (416) 204-3235, bloney@cpacanada.ca ADVERTISING REPRESENTATIVES


Alexandra Garant, (416) 204-3397, agarant@cpacanada.ca David McGee, 416-204-3342, dmcgee@cpacanada.ca QUEBEC ADVERTISING REPRESENTATIVE Serge Gamache, (450) 651-4257 sergegamache@videotron.ca ADVERTISING COORDINATOR Michael Marks (416) 204-3255 CIRCULATION MANAGER Annette DaRocha (416) 204-3367


CPA MAGAZINE EDITORIAL ADVISORY BOARD: Chair: Nancy Cheng, FCPA, FCA; Vinetta Peek, FCPA, FCMA; Michel Magnan, FCPA, FCA; Fred Clifford, CPA, CA, CPA (Ill.); Debra J. Feltham, FCPA, FCGA; John Redding, CPA, CMA


CPA MAGAZINE is published 10 times a year (with combined issues in January/February and June/July) by the Chartered Professional Accountants of Canada. Opinions expressed are not necessarily endorsed by CPA Canada. Copyright 2016. TORONTO: 277 Wellington St. West, Ontario M5V 3H2, Tel. (416) 977-3222, Fax (416) 204-3409 MONTREAL: 680 Sherbrooke St. West, 17th floor, Quebec H3A 2S3, Tel. (514) 285-5002, Fax (514) 285-5695 SUBSCRIPTION INQUIRIES: Tel. (416) 977-0748 or 1-800-268-3793, Fax (416) 204-3416 ON THE INTERNET: cpacanada.ca/cpamagazine EMAIL: cpamagazine@cpacanada.ca letters.editor@cpacanada.ca advertising.cpamagazine@cpacanada.ca


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Photo: Paul Orenstein


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