Steve Easterbrook, chief government officer of McDonald's Corp., speaks throughout the opening of the corporate's new headquarters in Chicago, Illi
Steve Easterbrook, chief government officer of McDonald’s Corp., speaks throughout the opening of the corporate’s new headquarters in Chicago, Illinois, U.S., on Monday, June 4, 2018.
Joshua Lott | Bloomberg | Getty Pictures
McDonald’s is suing its former CEO Steve Easterbrook for allegedly mendacity throughout the firm’s inside probe into his habits, in keeping with a submitting with the Securities and Trade Fee.
The fast-food chain’s board introduced in November that it had terminated Easterbrook for having a consensual relationship with an worker and tapped Chris Kempczinski as his successor.
McDonald’s now alleges that new details about Easterbrook’s actions has come to mild, prompting additional investigation from the corporate. A probe allegedly revealed that Easterbrook lied to the corporate and destroyed data concerning his inappropriate habits, together with three extra sexual relationships with staff earlier than his firing.
Easterbrook additionally accepted “a unprecedented inventory grant, price lots of of 1000’s of {dollars}” for one of many staff whereas they had been concerned in a sexual relationship, in keeping with the criticism.
The board mentioned it might not have signed a separation settlement with Easterbrook had it recognized about this alleged conduct. McDonald’s is suing him in Delaware state courtroom to recuperate the compensation and severance advantages he obtained as a part of that settlement. The corporate mentioned it has additionally taken motion to forestall him from exercising any inventory choices or promoting any inventory from excellent fairness rewards.
Easterbrook’s separation settlement included 26 weeks of severance. In 2018, he earned $15.9 million in whole compensation, together with a $1.three million base wage. He was additionally eligible for prorated fee for hitting 2019 efficiency targets.
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