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Turnover at McDonald's raises red flags

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Ray Kroc, founder of McDonald's, is shown holding a hamburger in front of his first store in Des Plaines, Illinois, in image supplied by McDonald's. UPI 
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Published: Dec. 31, 2009 at 3:29 PM
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OAK BROOK, Ill., Dec. 31 (UPI) -- The departure of a top McDonald's executive is a warning the U.S. fast food giant is not well prepared for executive turnover, a company board expert said.

McDonald's said in early December that Ralph Alvarez, 55, the fast-food giant's second in command, was leaving due to chronic pain in his knees.

After Chief Executive Officers James Cantalupo died suddenly of a heart attack and his successor, Charles Bell, left abruptly and died of cancer in January 2005, the company has been under close scrutiny regarding executive health issues, The New York Times reported Thursday.

"It's an important part of the CEO succession planning process that you have to have a very frank conversation about health issues. Somebody was not asking the right questions there," said Nell Minow, founder of the Corporate Library, which monitors corporate boards.

The No. 2 position at McDonald's has suffered from the turnover at the top. Alvarez's predecessor, Michael Roberts, resigned suddenly in 2006, complaining Bell's successor, James Skinner, was not preparing to leave fast enough for him to ascend to the top job.

Alvarez signed an agreement not to contradict the company release that said he was leaving due to health reasons, the Times said.

Topics: Ralph Alvarez
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