McDonald's Filed A Lawsuit Against The Former CEO, Steve Easterbrook, For Violations Of Work Ethics
Fast-food chain McDonald's has sued former President and CEO Steve Easterbrook, accusing him of lying and concealing data about work ethics violations. As the current President and CEO Chris Kempczinskisaid on Monday, the company expects to sue Easterbrook for compensation that He received when he left office.
"Recently, we learned new information about the behavior of our former CEO, Steve Easterbrook, from an employee report. We now know that his actions went against our values to a much greater extent than we thought when he left the company last year. Although the Board made the right decision to dismiss him quickly from the company last November, this new information makes it clear that he lied and destroyed evidence of improper personal relationships and should not have received contractual compensation. At the direction of the Board of Directors, the company filed a lawsuit to recover this compensation," Kempczinski said in a statement published on the company's website.
Easterbrook resigned as President and CEO of McDonald's on November 4, 2019, after the Corporation's management concluded that he violated company policy by entering into a relationship with an employee. According to Bloomberg, the amount of compensation for the former head of McDonald's was 675 thousand dollars. He also received a share of the company's shares, which the Agency estimates at more than $ 37 million.
McDonald's is an American Corporation that owns one of the world's largest fast-food restaurant chains. It was founded in 1940 in San Bernardino, California. It is currently headquartered in Chicago, Illinois. The company owns more than 38 thousand restaurants in more than 100 countries.
We recently became aware through an employee report of new information regarding the conduct of our former CEO, Steve Easterbrook. We now know that his conduct deviated from our values in different and far more extensive ways than we were aware when he left the company last year. While the Board made the right decision to swiftly remove him from the Company last November, this new information makes it clear that he lied and destroyed evidence regarding inappropriate personal behavior and should not have retained the contractual compensation he did upon his exit. As such, the Company, at the direction of the Board of Directors, has filed litigation to recover the compensation he retained upon his departure from McDonald’s and align his exit payout with a “for cause” termination.