Disgraced McDonald’s ex-CEO pays back US$105m in settlement
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McDonald’s has settled a lawsuit with former CEO Steve Easterbrook, forcing the disgraced executive to repay his severance package of more than $100 million.
Easterbrook was fired in 2019 after the fast-food giant’s board determined that he violated company policy by demonstrating poor judgment involving a recent consensual relationship with an employee. In August 2020, McDonald’s filed a lawsuit against Easterbrook for lying to the board about the extent of his relationships with employees.
In a filing to the US Security and Exchange Commission Thursday, McDonald’s criticized Easterbrook for his misconduct, lies, and efforts to impede investigations into his actions and that the settlement is the best path forward.
This settlement holds Steve Easterbrook accountable for his clear misconduct, including the way in which he exploited his position as CEO, Enrique Hernandez, Jr., the chairman of McDonald’s board of directors, said in the filing. The resolution avoids a protracted court process and allows us to move forward.
Questions & Answers
Q.Why did McDonald's initially fire its former CEO, Steve Easterbrook?
Why did McDonald's initially fire its former CEO, Steve Easterbrook?
He was fired in 2019 because the company board found he violated policy. This involved poor judgment concerning a recent consensual relationship with an employee.
Q.What was the specific accusation McDonald's made against Steve Easterbrook when they filed a lawsuit in 2020?
What was the specific accusation McDonald's made against Steve Easterbrook when they filed a lawsuit in 2020?
McDonald's accused Steve Easterbrook of lying to the board. The lawsuit stated he lied about the full extent of his relationships with employees.
Q.How much money is Steve Easterbrook required to repay as part of this settlement?
How much money is Steve Easterbrook required to repay as part of this settlement?
Steve Easterbrook is required to repay his severance package as part of the settlement. This amounts to more than US$100 million.
Q.Why did McDonald's decide to pursue a settlement rather than continuing with court proceedings?
Why did McDonald's decide to pursue a settlement rather than continuing with court proceedings?
McDonald's believed the settlement was the best path forward. It avoids a protracted court process, allowing the company to move forward.
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