(Story updated Aug. 6, 2015.)
Dignity Health CEO Lloyd Dean has been elected to the board of fast-food giant McDonald's Corp. in a move that some public health experts hope will spur the company to improve the healthiness of its menu.
Dean, 65, was appointed on Monday. He also serves on the board of Wells Fargo & Co. and Navigant Consulting.
San Francisco-based Dignity serves many underserved populations that suffer from chronic conditions like heart disease and diabetes.
Dignity said in a statement that Dean has "advocated for enhanced well-being of all the communities" that the system serves. "Knowing the vitally important role that nutrition plays in overall health and disease management, Mr. Dean’s guidance and insight will have a positive impact on communities across the U.S. in this governance role at McDonald’s."
McDonald's has been criticized for having an insular board that is overly tied to Chicago-based businesses. Public health experts such as John Quelch, a professor at both Harvard Business School and the Harvard T.H. Chan School of Public Health, hope this could be a step in the right direction for the fast-food chain, which has been chastised for marketing unhealthy foods to children and low-income individuals.
“McDonald's needs to connect its menu selection and food preparation decisions to the healthcare outcomes of the populations it serves,” Quelch, a marketing expert, wrote in an e-mail. “Mr. Dean's appointment hopefully signals a commitment to making this essential link.”
Though some may question the optics of a healthcare executive joining the board of a company known for fattening food, Dean's appointment presents a strong opportunity for McDonald's to better align its objectives around nutrition and overall wellness, said Leonard Friedman, a professor at the Milken Institute School of Public Health at George Washington University and director of the school's masters in health administration program.
“I would rather have him at the table as a voice for positive change rather than standing on the outside talking about the things that should be done,” Friedman said. “I think having him on the board presents a good opportunity.”
A McDonald's spokeswoman declined to say whether Dean was brought on for his healthcare expertise but acknowledged Dean's success in transforming brands. Friedman believes the fast-food company intentionally chose a healthcare executive.
"I don't see anything nefarious associated with this move, Friedman said. “I think they're trying to identify a well-seasoned healthcare leader, and it's probably a smart move.”
Tax filings from 2012 show that Dean made about $6 million for his role as president and CEO. McDonald's pays board members a base cash retainer of $100,000 a year and also gives them $140,000 worth of common stock for each full year of service.
Dean was No. 21 on Modern Healthcare's 2014 list of the 100 Most Influential People in Healthcare and was also recognized last year as one of Modern Healthcare's Top 25 Minority Executives in Healthcare.
