Former CEO of McDonalds Steve Easterbrook was ordered to repay $105 million, in cash and stock, as a result of the lawsuit filed by the fast food chain. The Former CEO of McDonald’s was fired in 2019 after the company found out that he was hiding consensual relationships with his subordinates. He was replaced by Chris Kempczinski who was serving as the president of Mcdonald's at the time.
Steve Easterbrook has repaid $105 million in order to settle the lawsuit that was filed by the fast-food company against him accusing him of engaging in inappropriate relationship with the employees and covering it up. The act violated the policy of the fast food chain and he was immediately terminated. When Easterbrook was fired in 2019, he was given a golden parachute upon his exit in the company, a severance package that was about $105 million in total. The company gave him this deal because at the time Easterbrook claimed that the relationship was never physical.
However, the company eventually found out during their eight day investigation that Easterbrook did not disclose all of the details regarding his relationships. In July 2020, an anonymous tipster sent McDonald’s more information regarding Easterbrook’s series of misconduct. As a result, McDonald’s did more investigation in which they discovered that Eastbrook did have three sexual affairs with the employees during his tenure. The company then sued Easterbrook for lying to get the severance package.
The company released a statement which states that the Board of Directors of McDonald’s value the act of doing the right thing and they will always put their customers and people first. During the tenure of Easterbrook as a CEO, he has failed numerous times to uphold the values practiced by the company and it is his responsibility as a leader of the company to fulfill these values. Easterbrook has sent an apology to his former co-workers, to the company and to the Board of Directors for his lack of better judgment.
Steve Easterbrook served as a President and Chief Executive Officer of McDonald’s since 2015 until he was ousted. Prior to that, he was serving as the senior executive vice-president and chief brand officer of the company since 2013. According to the management of fast food chain, he was fired because he has demonstrated poor judgment. Easterbrook acknowledged his mistake and emailed his employees, telling them that he agrees with the decision of the board and it is time for him to move forward.
Sources: NY Times, Indian Express, NY Daily News