Former McDonald's boss paid $105 million for staff relations.
Written byTimes Magazine
McDonald's has filed a lawsuit in which former CEO Steve Easterbrook returned more than $105 million in equity and cash prizes.
The fast-food chain claims that Mr. Easterbrook hid and lied because he had sex with three employees.
Mr. Easterbrook apologizes for failing to uphold the values of the Company and for failing to carry out his duties. The 54-year-old British entrepreneur initially received $105 million in compensation in 2019. In November of that year, he was fired after admitting he had a consensual relationship with a team member.
At the time, McDonald's said Mr. Easterbrook "violated company policy" and showed "poor judgment." But further investigation revealed two more hidden links, and the Company said if they had known, they would not have agreed to the multimillion-dollar payment.
"This agreement blames Steve Easterbrook for his obvious mistakes, including the way he used his position as CEO," Enrique Hernandez Jr., chairman of McDonald's, said Thursday. "Today's resolution avoids lengthy litigation and takes us beyond the chapter that belongs to our past."
In July 2019, investigators discovered via anonymous signals that Mr. Easterbrook had sent sexually explicit photos of three of his employees to his company address in his private email.
Investigators also found reports that he had approved a company that offered hundreds of thousands of dollars in stock to one of its employees "shortly after their first sexual relationship." McDonald's said it initially couldn't find the photos and messages because Mr. Easterbrook deleted them from his phone.
He alleged that Mr. Easterbrook violated his obligations to the Company by lying when asked about his behavior to seek higher compensation through fraud.
But Mr. Easterbrook's lawyers called the lawsuit "useless" and alleged that McDonald's had details of its ties to its computer systems at the time the split deal was negotiated.
In April, the chain announced it would roll out new training at 39,000 restaurants to prevent harassment and promote a safe and respectful workplace. Most restaurants are operated by franchisees who will have to meet new standards for a safer workplace from January 2022.
The announcement came after several officials sued him.
Mr. Easterbrook, 54, initially worked for McDonald's as a manager in London in 1993 before joining the Company. He left the Company in 2011 to head up Pizza Express and then Asian grocery chain Wagamama, before returning to McDonald's in 2013 and eventually becoming CEO in 2015.
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