McDonald's fires CEO Steve Easterbrook over 'consensual relationship' with employeeLast updated on Nov 04, 2019, 11:55 am
McDonald's has fired CEO Steve Easterbrook over a consensual relationship he had with an employee, the fast-food company announced on Sunday.
In a statement, McDonald's said that Easterbrook showed "poor judgment" in dating an employee, who remains unnamed, and violated company's policy.
Reportedly, Easterbrook has also stepped down as McDonald's president and member of the board.
Here are more details.
Easterbrook said his relationship was a 'mistake'
On Friday, McDonald's Board of Directors voted to terminate Easterbrook's tenure at the company after probing his relationship with an employee, according to BBC.
Reportedly, Easterbrook admitted that his relationship was a "mistake" in an email to employees.
He wrote, "Given the values of the company, I agree with the board that it is time for me to move on."
McDonald's USA President named company's new CEO
To replace Easterbrook, McDonald's Board named Chris Kempczinski as the company's CEO with immediate effect.
Kempczinski most recently served as the President of McDonald's USA, a position which is now held by Joe Erlinger. Erlinger was previously serving as the President of International Operated Markets.
McDonald's confirmed that the leadership transition is "unrelated to the Company's operational or financial performance."
Easterbrook first joined McDonald's in 1993
Coming to Easterbrook, he started working at McDonald's in 1993 as a manager in London.
He rose in ranks and left the company to join Pizza Express in 2011. Thereafter, he moved to Wagamama and in 2013, joined McDonald's again. He became the company's head in the UK and northern Europe.
He was appointed the CEO in 2015, and under his leadership, the company's share value price doubled.
As CEO, Easterbrook earned millions; severance not announced yet
Reportedly, Easterbrook also drew a hefty paycheck, earning $15.9 million in 2018. His compensation peaked in 2017, when he earned $21.8 million. His earnings were criticized as the median employee salary at McDonald's is $7,473. Meanwhile, Easterbrook's severance is yet to be announced.
Intel and Lululemon CEOs resigned over workplace relationships last year
Notably, Easterbrook is not the first CEO who has had to leave his position over a relationship at the workplace.
Last year, both Intel CEO Brian Krzanich and yoga apparel brand Lululemon chief Laurent Potdevin resigned after news of their relationships with subordinates broke.
Back in 2016, Priceline CEO Darren Huston also left his position over a workplace relationship.