The Strategist

Former McDonald's CEO refuses to return severance pay to company

09/22/2020 - 03:33

Former McDonald's CEO Steve Easterbrook believes that the company has no right to seek the return of severance pay, since he has complied with all the terms of the agreement signed upon leaving. This was stated by one of his lawyers.

According to him, this agreement contained many conditions, including refusal to work for competitors in the next two years, a ban on public criticism of the company, on filing lawsuits against it and on attempts to write letters to its employees. In return, the corporation agreed to pay Easterbrook severance pay. Equilar previously estimated the total amount of this compensation at about $ 57.3 million.

Easterbrook lost his position as CEO and President of McDonald's in November 2019 when it was revealed that he was flirting with an employee, contrary to company rules.

In August 2020, the corporation filed a lawsuit against Easterbrook demanding the return of severance pay, since information surfaced about other office affairs of the former top manager, which at the time of his dismissal the company did not know about. In July, the corporation was notified of one of these novels by an anonymous source. An internal audit revealed there were three novels, but Easterbrook destroyed evidence of the relationship and defrauded the board of directors in the first investigation last fall, McDonald's said.

Easterbrook took over McDonald's in March 2015. In the years that he led the company, its stock has doubled in value thanks to a series of initiatives McDonald's has taken in response to changing consumer preferences for healthier food. The corporation also partnered with UberEats and acquired a number of technology companies to develop digital services to improve the customer experience.