The Strategist

McDonald's sues its former CEO

08/11/2020 - 07:45

On Monday, August 10, McDonald’s filed a lawsuit with a US court against the company’s former CEO Stephen Easterbrook, the corporation said in documents filed with the US Securities and Exchange Commission. McDonald’s accuses Mr. Easterbrook of hiding the fact that he had sexual relations with three employees. The implied incident occurred during an internal investigation prior to his departure from the company.

McDonald's fired Mr. Easterbrook in November last year, after it became known about his relationship with one of his subordinates. An internal investigation was conducted prior to this, but no other sexual relations between Mr. Easterbrook and employees were known at the time. 

The corporation states that while the first case involved, at least according to Mr. Easterbrook, a short-term relationship in which it didn’t come to sex; the other cases were about sexual relationships. McDonald’s says the former CEO lied about this, and if the company knew about the extent of his "inappropriate personal behavior", he would be fired for these violations, not by agreement, as it was eventually done.

In this regard, McDonald’s demands that Mr. Easterbrook return of millions of dollars that were paid to him when he left the company. According to Equilar, a company specializing in the analysis of salaries and bonuses for top managers, Mr. Easterbrook received a total of about $ 42 million when he left McDonald's.