McDonald’s FIRES its British CEO Steve Easterbrook from his $ 16 Ma-year job after a ‘consensual’ affair with an employee that ‘violated company policy’
- McDonald’s announced CEO Steve Easterbrook’s resignation on Sunday
- The fast food giant said Easterbrook demonstrated poor judgment in violating company policy by engaging in a consensual relationship with an employee
- In an email to employees, the 52 – year-old divorcé acknowledged he had a relationship with an employee and said it was a mistake
- Easterbrook, who is British, became CEO in 2015 and earned $ 15 .9M last year
Published:16: (EST, 3 November)Updated: 17: 31 EST, 3 November 2019
McDonald’s chief executive officer has been ousted following the revelation that he ‘ d engaged in a consensual sexual relationship with an employee.
In a statement Sunday evening, the fast food giant said former president and CEO Steve Easterbrook had demonstrated poor judgment in violating a company policy that forbids managers from having romantic relationships with direct or indirect subordinates.
Easterbrook acknowledged he had a relationship with an unnamed employee in an email to staff, calling it a ‘mistake’.
‘Given the values of the company, I agree with the board that it is time for me to move on, ‘he wrote.
McDonald’s CEO Steve Easterbrook (pictured) has stepped down after violating company policy by engaging in a consensual relationship with an employee, the fast food giant announced on Sunday
McDonald’s board of directors voted for Easterbrook’s departure on Friday after conducting a thorough review.
Details about his relationship have not been disclosed.
Easterbrook, a divorcé from Watford, United Kingdom, joined the company in 1993 and has been chief executive since March 2015.
Under his leadership the company’s shares nearly doubled in value while sales at its US locations stagnated.
Details of Easterbrook’s severance package will be released Monday in a federal filing, according to a company spokesperson.
The 52 – year-old executive’s salary was tied to McDonald’s share price. It peaked in 2017 at $ 21 .8million, including $ 9.1million in incentive-based pay.
He received $ 15 .9million in total compensation last year.
Easterbrook became CEO of McDonald’s in 2015 and earned $ 15 .9million last year
The board named Chris Kempczinski , who recently served as president of McDonald’s USA, as its new president and CEO following Easterbrook’s departure.
Kempczinski was instrumental in the development of McDonald’s strategic plan and oversaw the most comprehensive transformation of the US business in McDonald’s history, Enrique Hernandez, chairman of McDonald’s board, said in a statement.
The board named Chris Kempczinski (pictured) as its new president and CEO
‘Steve brought me into McDonald’s and he was a patient and helpful mentor,’ Kempczinski said, thanking his predecessor for his contributions.
Speaking to the Wall Street Journal on Sunday, Kempczinski said he will maintain Easterbrook’s focus on technology when he takes over as CEO and that he believes the company’s investments will pay off.
‘There isn’t going to be some radical, strategic shift. The plan is working, ‘Kempczinski said.
He said he will continue working with franchisees to improve US sales.
‘It’s something we need to solve together,’ he said.
Joe Erlinger, McDonald’s current president of the international operated markets, will take over Kempczinski’s role as president of McDonald’s USA, effective immediately.