The McDonald’s Corporation is suing its former executive, Steve Easterbrook, for allegedly hiding evidence of his wrongdoing during his term as the company’s CEO.
The company filed a complaint against Easterbrook to amend the “injuries” it had suffered due to the former CEO’s deceit.
Last year, McDonald’s fired Eastbrook “without cause,” complete with “substantial severance benefits” after he violated the company’s policy.
Easterbrook’s severance paid amounts to more than $41 million, Equilar estimated.
According to McDonald’s, Easterbrook had engaged in an inappropriate relationship with a subordinate during his term as McDonald’s CEO.
The act, despite being consensual, has demonstrated Easterbrook’s “poor judgment,” and reflects his lack of professionalism, making him unqualified for the position.
McDonald’s Corporation sold off many of its stores to franchises during Easterbrook’s term as the company’s CEO.
According to a CNBC report, the strategy helped the company’s profits, however, it also led to “falling revenues” due to “accounting differences.”
New Information on Eastbrook’s Misconduct
Recently, McDonald’s discovered new information about Eastbrook’s misconduct during his CEO days at the fast-food company.
In July 2020, the company received an anonymous tip against Easterbrook.
According to them, new evidence on Eastbrook shows that the former CEO:
- Had relationships with three McDonald’s employees during his term
- Approved a huge amount of “stock grant” to an employee he had a relationship with
- Concealed the truth from McDonald’s investigators in 2019
Upon further investigation, the company found dozens of “photographic evidence” and videos of Easterbrook’s s–ual misconduct.
Also, they found out that Easterbrook had used his company email to send the pictures and videos as an attachment to his personal email.
McDonald’s explains in their complaint that Easterbrook’s actions “constitute breaches” of his duties to the company.
Back in 2019, the company agreed to sign a separation agreement with Easterbrook.
In their current complaint, the company stated that had they known about Easterbrook’s alleged wrongdoings, they would not have agreed to sign the separation agreement with him.