McDonald’s says it's suing Stephen Easterbrook, the CEO it ousted last year over an inappropriate relationship with an employee, alleging that he covered up relationships with three other employees and destroyed evidence
McDonald’s says it's suing Stephen Easterbrook, the CEO it ousted last year over an inappropriate relationship with an employee, alleging Monday that he covered up relationships with three other employees and destroyed evidence.“McDonald's does not tolerate behavior from employees that does not reflect our values,” said McDonald's President and CEO Chris Kempczinski, who was promoted following Easterbrook's departure, in a message to employees Monday.
In his message to employees, Kempczinski said he is committed to making sure that employees are “encouraged and comfortable coming forward with information about any behavior that doesn't align with our values.” Based on what the company knew at the time, McDonald’s board approved a separation agreement “without cause” that allowed Easterbrook to keep nearly $42 million in stock-based benefits, according to Equilar, which tracks executive compensation. Easterbrook also collected 26 weeks of pay, amounting to compensation of about $670,000.
McDonald's didn't say why those servers weren't checked during its initial investigation. In the lawsuit, the company says it relied on Easterbrook — its highest ranking executive — to be truthful.In the lawsuit, which was filed in Delaware, McDonald’s said it would not have terminated Easterbrook without cause if it had known of the additional relationships.
“That’s my big hope with this thing, that we learn from it,” he said. “Companies are not going to settle for this anymore.”
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