He lost his lucrative job as the leader of a big international corporation due to the Steve Easterbrook controversy. Even worse, he was penalized for his prior transgressions.
The former president and CEO of McDonald’s was a British business executive named Stephen Easterbrook.
2019 saw the firing of the CEO of an American fast-food company due to a romance controversy.
Easterbrook held the Company’s top position from March 2015 until his dismissal in November 2019.
Steve Easterbrook Scandal: Fired for having affairs with employees
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The board of directors of McDonald’s decided to fire Steve Easterbrook immediately on November 1, 2019, after revelations of his liaison with a team member.
His four years with the company were cut short due to the connection, which went against the anti-fraternization policy of the company.
As CEO, Chris Kempczinski took over for Easterbrook as President of McDonald’s USA. That wasn’t the end of it.
In August 2020, McDonald’s sued the former Executive, alleging that he had lied about the breadth and quantity of his interactions with junior workers.
In the year prior to his termination, the Company said that he had sexual connections with three different women.
Easterbrook was also accused of trying to get his over $40 million severance payment back and giving stock options worth hundreds of thousands of dollars to a member of staff with whom he had an affair.
Additionally, he was charged with exchanging pornographic pictures and films of several women using his work email, including the three alleged partners.
The action sought to have Easterbrook’s dismissal changed to “for cause,” allowing the Company to recover its severance costs.
For his mischief, Steve Easterbrook has been fined
The SEC penalized former McDonald’s CEO Steve Easterbrook for deceiving investors about his termination in 2019.
Easterbrook has agreed to pay the $400,000 fine requested by a US financial watchdog without admitting or rejecting the allegations.
The businessman had made “false and misleading statements to investors,” according to the Securities and Exchange Commission in the United States, which made this announcement on Monday, January 8.
McDonald’s was accused by the Commission of having “shortcomings” in its public disclosures on Easterbrook’s dismissal.
It did acknowledge, however, that the Company had “substantially cooperated” with their inquiry and would not face any penalties.
The SEC ruling, according to McDonald’s, confirmed that Easterbrook was “accountable for his misconduct.” The company said that after discovering his falsehoods, it dismissed him and filed a lawsuit.
Additionally, it pledged to uphold its ideals and expressed pride in its “strong’speak up’ culture,” which encourages staff members to report behavior that doesn’t meet standards.
From 2015 until 2019, Steve Easterbrook, a British national from Watford, Hertfordshire, oversaw McDonald’s operations.
He was given credit for reviving the company’s menus, refurbishing locations, and employing better products. During his time in the US, the value of the company’s shares more than quadrupled.
After discovering his consensual connection with one of the staff, the fast food juggernaut first dismissed him. Secret connections to other staff members were discovered after further research.
Easterbrook obtained a severance payment worth more than $105 million at first, which McDonald’s eventually denied after learning of his extramarital relationships and other wrongdoings.
The British billionaire made one of the biggest clawbacks in the annals of corporate America in December 2021 by returning the funds in cash and shares. He also expressed regret for not upholding the company’s ideals.
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