Please ensure Javascript is enabled for purposes of website accessibility
McDonald's Sues Ousted CEO, Alleging Employee Relationships
gvw_ap_news
By Associated Press
Published 4 years ago on
August 10, 2020

Share

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.

The company now wants to reclaim hundreds of thousands of dollars in compensation paid to Easterbrook on his departure.

“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.

McDonald’s fired Easterbrook last November after he acknowledged exchanging videos and text messages in a non-physical, consensual relationship with an employee. Easterbrook told the company that there were no other similar instances. Easterbrook and his wife divorced in 2015, the same year he became McDonald’s CEO.

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 Attempts to Block Easterbrook From Exercising Stock Options

McDonald’s says in a lawsuit that in July, it received an anonymous tip that Easterbrook had engaged in a sexual relationship with another employee. After an investigation, McDonald’s confirmed that relationship as well as two other physical, sexual relationships in the year before he was fired. Easterbrook also approved a special grant of restricted stock, worth hundreds of thousands of dollars, to one of those employees, the lawsuit said.

The company said Monday that Easterbrook removed evidence of those relationships — including sexually explicit photos and videos sent from corporate email accounts — from his cell phone, preventing investigators from learning about them prior to his firing.

In a lawsuit filed in Delaware, McDonald’s said it would not have terminated Easterbrook without cause if it had known of the additional relationships.

McDonald’s is now attempting to block Easterbrook from exercising his stock options and said it will seek compensatory damages.

A message seeking comment was left with Easterbrook’s attorney.

McDonald’s shares were flat at $203.17 in morning trading.

RELATED TOPICS:

DON'T MISS

Tyreek Hill’s Traffic Stop Revives Discussion About the Realities Faced by Black Drivers

DON'T MISS

Woman Killed Near Moscow After More Than 140 Ukrainian Drones Target Russia, Officials Say

DON'T MISS

What Are Valley Members of Congress Doing to Fix Crumbling Rural Roads?

DON'T MISS

US and Britain Accuse Iran of Sending Russia Missiles to Use in Ukraine

DON'T MISS

49ers Spoil Aaron Rodgers’ Return With a Win Over the Jets

DON'T MISS

Ryan Seacrest Debuts as New ‘Wheel of Fortune’ Host

DON'T MISS

Americans’ Inflation-Adjusted Incomes Rebounded to Pre-Pandemic Levels Last Year

DON'T MISS

Firefighters Are Getting the Upper Hand on Fresno County’s Boone Fire

DON'T MISS

It’s a High-Stakes Debate Night for Harris and Trump

DON'T MISS

Busch and Bellinger Light up Their Old Team in Cubs’ Win Over NL West-Leading Dodgers

UP NEXT

With TV Drug Ads, What You See Is Not Necessarily What You Get

UP NEXT

Young Golden Eagle Attacks Toddler in Norway, Its Fourth Such Assault on Humans

UP NEXT

Wildfires East of LA and South of Reno Threaten Homes and Force Thousands to Evacuate

UP NEXT

Waffle House CEO Walt Ehmer Has Died at Age 58

UP NEXT

Israeli Soldiers Shoot and Kill an American Woman During a West Bank Protest, Witness Says

UP NEXT

US Government Orders Big US Airlines to Explain Their Frequent-Flyer Programs

UP NEXT

Fresno Business Owner Catches $1 Million Prize at Chukchansi

UP NEXT

Visalia Man Convicted of Child Molestation, Faces Life Sentence as Repeat Offender

UP NEXT

4 Dead, at Least 9 Injured in Shooting at High School Near Atlanta, Authorities Say

UP NEXT

Shooting at Georgia High School Leaves Multiple Casualties, Officials Say

US and Britain Accuse Iran of Sending Russia Missiles to Use in Ukraine

22 mins ago

49ers Spoil Aaron Rodgers’ Return With a Win Over the Jets

26 mins ago

Ryan Seacrest Debuts as New ‘Wheel of Fortune’ Host

35 mins ago

Americans’ Inflation-Adjusted Incomes Rebounded to Pre-Pandemic Levels Last Year

36 mins ago

Firefighters Are Getting the Upper Hand on Fresno County’s Boone Fire

41 mins ago

It’s a High-Stakes Debate Night for Harris and Trump

43 mins ago

Busch and Bellinger Light up Their Old Team in Cubs’ Win Over NL West-Leading Dodgers

51 mins ago

Israel Says Its Forces Likely Unintentionally Shot and Killed an American Activist in the West Bank

58 mins ago

Poll: Republicans Are More Likely to Trust Trump Than Official Election Results

1 hour ago

Fresno Unified Must Address Glaring Achievement Gaps Among Latino Students

2 hours ago

Tyreek Hill’s Traffic Stop Revives Discussion About the Realities Faced by Black Drivers

MIAMI — After his traffic stop in Miami on Sunday, Tyreek Hill talked about “the talk” — instructions passed down in Black famil...

8 mins ago

9 mins ago

Tyreek Hill’s Traffic Stop Revives Discussion About the Realities Faced by Black Drivers

15 mins ago

Woman Killed Near Moscow After More Than 140 Ukrainian Drones Target Russia, Officials Say

17 mins ago

What Are Valley Members of Congress Doing to Fix Crumbling Rural Roads?

22 mins ago

US and Britain Accuse Iran of Sending Russia Missiles to Use in Ukraine

27 mins ago

49ers Spoil Aaron Rodgers’ Return With a Win Over the Jets

35 mins ago

Ryan Seacrest Debuts as New ‘Wheel of Fortune’ Host

36 mins ago

Americans’ Inflation-Adjusted Incomes Rebounded to Pre-Pandemic Levels Last Year

41 mins ago

Firefighters Are Getting the Upper Hand on Fresno County’s Boone Fire

MENU

CONNECT WITH US

Search

Send this to a friend