Steve Easterbrook scandal cost him his lucrative position as the head of a major global firm. To make matters worse, he has been fined for his past misdeeds.
Stephen Easterbrook is a British business Executive who served as the president and Chief Executive of McDonald’s.
The CEO of an American fast-food corporation was fired in 2019 after being embroiled in a relationship scandal.
Easterbrook served in the topmost position of the Company from March 2015 up to his sacking in November 2019.
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Steve Easterbrook Scandal: Had Affairs With Employees And Got Fired
On November 1, 2019, the board of directors at Mcdonald’s voted to dismiss Steve Easterbrook immediately after evidence of his affair with a staff member.
The relationship, which violated Company’s anti-fraternization policies, caused his four-year tenure at the Company to end.
Chris Kempczinski, president of McDonald’s USA, replaced Easterbrook as the CEO. It did not end there.
McDonald’s filed suit against the former Executive in August 2020, accusing him of lying about the extent and number of his relationships with subordinate employees.
The Company claimed that he had sexual relationships with three women during the year before he was fired.
Easterbrook was also accused of seeking to recover his severance package of over $40 million and awarding one staff member, with whom he had an affair, stock options worth hundreds of thousands of dollars.
Additionally, he was accused of using his corporate email account to exchange sexually explicit photos and videos of several women, including the three alleged relationships.
The lawsuit aimed to change the reason for Easterbrook’s firing to “for cause,” enabling the Company to recoup its severance payments.
Steve Easterbrook Has Been Fined For His Mischief
The former boss of McDonald’s, Steve Easterbrook, has been fined by the SEC for misleading investors about his firing in 2019.
US financial watchdog has demanded a $400,000 penalty, which Easterbrook has agreed to pay without admitting or denying the claims.
On Monday, January 8, the Securities and Exchange Commission in the United States said that the businessman had made “false and misleading statements to investors.”
The Commission also charged McDonald’s with “shortcomings” in making public disclosures related to Easterbrook’s firing.
However, it admitted that the Company had “substantially co-operated” with their investigation and would not be hit with any fines.
McDonald’s said the SEC order reinforced it held Easterbrook “accountable for his misconduct.” The firm said it fired him and sued him after learning his lies.
It also promised to ensure its values and said it was proud of its “strong ‘speak up’ culture,” encouraging employees to report conduct by anyone that falls short of expectations.
Steve Easterbrook, a UK citizen from Watford, Hertfordshire, led McDonald’s from 2015 to 2019 after conducting its UK operations.
He was credited with revitalizing the firm’s menus, remodeling stores, and using improved ingredients. The value of the Company’s shares more than doubled during his tenure in the US.
At first, the fast food giant fired him after finding his consensual relationship with one of the employees. Further investigation uncovered secret relationships with other staff members.
Easterbrook initially received more than $105m as part of a severance package, which McDonald’s later claimed after being aware of his other affairs and misdeeds.
In December 2021, the British businessman returned the money in cash and stock in one of the largest clawbacks in corporate America’s history. He also apologized for failing to uphold the firm’s values.
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