WHAT’S BEING CLAIMED:
- McDonald’s announced CEO Steve Easterbrook’s resignation on Sunday.
- In an email to employees, Easterbrook acknowledged that he had a relationship with an employee, which violated company policy.
- The 52-year-old British executive became CEO in 2015 and earned $15.9M last year.
The chief executive officer of McDonald’s has been terminated after it was revealed that he had a relationship with an employee, which violated company policy.
The company policy forbids managers from having romantic relationships with subordinates.
The fast-food giant issued a statement Sunday evening, stating that former president and CEO Steve Easterbrook had demonstrated poor judgment in violating the company policy.
In an email to staff, Easterbrook acknowledged that he had a relationship with an unnamed employee, and called it a “mistake”. He wrote, “Given the values of the company, I agree with the board that it is time for me to move on.”
After a thorough review, McDonald’s board of directors voted for Easterbrook’s departure on Friday.
The 52-year-old executive, who was recently divorced, has three children.
The Watford, United Kingdom, native has been part of the company since 1993. He then became its chief executive in March 2015.
The company’s shares nearly doubled in value under his leadership even while US sales stagnated.
As the executive’s salary was tied to McDonald’s share price, Easterbrook received millions of dollars in compensation in recent years.
In 2017, he received $21.8million, including $9.1million in incentive-based pay. Last year, he received $15.9million in total.
A company spokesperson said they will release the details of Easterbrook’s severance package in a federal filing on Monday.
Chris Kempczinski, who was recently the president of McDonald’s USA, was named as the company’s new president and CEO following Easterbrook’s departure.
McDonald’s board chairman, Enrique Hernandez, hailed Kempczinski as being instrumental in the development of McDonald’s strategic plan. Kempczinski also oversaw the most comprehensive transformation of the US business in McDonald’s history.
Kempczinski thanked his predecessor for his contributions, saying, “Steve brought me into McDonald’s and he was a patient and helpful mentor.”
He told the Wall Street Journal on Sunday that he will maintain Easterbrook’s focus on technology when he takes over as CEO.
Kempczinski explained, “There isn’t going to be some radical, strategic shift. The plan is working.”
He also plans to continue working with franchisees to improve US sales.
The new president of McDonald’s USA, which was Kempczinski’s previous role, will be Joe Erlinger, the current president of the international operated markets.
Source: Daily Mail