Worlds largest Fast food giant McDonald’s suing their former CEO Steve Easterbrook for allegedly entering into “abusive sexual relationships” with three female employees, and misleading and concealing board about them.
In a new lawsuit, McDonald’s raised allegations about Easterbrook regarding concealing evidence about the relationships and lying about them during the investigation conducted last year.
Mcdonalds After Steve Easterbrook
Steve Easterbrook was dismissed from the CEO post for McDonald’s from last November after divulging about the non-physical, consensual relationship with a colleague before the investigation team. He signed with a “without cause” agreement reportedly worth around $40m – and according to McDonald’s spokesperson, they are about claiming the money back.
In a bombshell filing to the SEC, McDonald’s alleged Easterbrook concealed evidence about three more relationships and lied about his act. McDonald’s is now forwarding the legal suit against Easterbrook in the Court of Chancery of the State of Delaware to recover compensation and severance benefits that would not have been retained, had he been terminated for cause from Easterbrook.
During the press conference, Mcdonald’s spokesperson said;
“Recently identified evidence shows that Easterbrook had physical, sexual relationships with three McDonald’s employees in the year before his termination; that he approved an extraordinary stock grant, worth hundreds of thousands of dollars, for one of those employees in the midst of their sexual relationship; and that he was knowingly untruthful with McDonald’s investigators in 2019.
These actions constitute breaches of Easterbrook’s duties to McDonald’s. Had Easterbrook been candid with McDonald’s investigators and not concealed evidence, McDonald’s would have known that it had legal cause to terminate him in 2019 and would not have agreed that his termination was “without cause.” Accordingly, McDonald’s brings this action to redress the injuries it has suffered by virtue of Easterbrook’s fiduciary breaches and deceit”.
McDonald’s current CEO, Chris Kempczinski, has emailed staff about the issue, and In a message titled “Adhering to Our Values”, he concluded; “McDonald’s does not tolerate behavior from any employee that does not reflect our values. These actions reflect a continued demonstration of this commitment”.