McDonald's chief executive out over relationship with employee

Tuesday, 05 Nov, 2019

The British businessman first joined McDonald's in 1993 as a manger in London, and was appointed CEO in 2015.

As CEO, Easterbrook made just under $16 million in total compensation in 2018, a decrease from his 2017 compensation of $21.7 million. McDonald's forbids managers from having romantic relationships with direct or indirect reports. Given the value of the Company, I agree with the Board that it is time for me to move on.

Piper Jaffray, anticipating fallout with investors over Steve Easterbrook's firing, also downgraded the company's shares to neutral from overweight.

McDonald's said Easterbrook "has separated from" the company but did not immediately clarify whether he had resigned or been fired.

He also said that his time as CEO "have been the most fulfilling years of my working life".

"As for my departure, I engaged in a recent relationship with an employee, which violated McDonald's policy".

McDonald's would not provide details about the employee with whom Mr Easterbrook was involved, and his attorney declined to answer questions.

"I'm seeing more companies ask about them", Segal said. In May, the company revamped its harassment policy after coming under pressure from employees, labor advocates and members of Congress. (Photo by Drew Angerer/Getty Images) Chris Kempczinski, president of McDonald's U.S., speaks at the unveiling of McDonald's new corporate headquarters during a grand opening ceremony on June 4, 2018 in Chicago, Illinois.

The 52-year-old executive was handsomely remunerated for his achievements, with his pay indexed to the company's share price. During that period, McDonald's also undertook several "velocity growth accelerators", including (1) an experience of the future layout, which features a combination of ordering flexibility, customer experience, and a more streamlined menu; (2) mobile ordering and payments; and (3) delivery alternatives.

McDonald's has 38,000 restaurants in over 100 countries, about 93% of which are owned and operated by independent local businesspeople. He turned to the co-operation with the UberEats, so that the food from McDonald's, and now is being delivered to.

Easterbrook, who became CEO in 2015, sent an email to McDonald's employees acknowledging the relationship, and called it a mistake.

Within one year and one month of joining McDonald's, Kempczinski was promoted to president of McDonald's U.S. in October 2016.

"You can make a very strong argument that Easterbrook was the best CEO in the restaurant industry", said Michael Halen, who covers the sector for Bloomberg Intelligence.

Penney echoed the concerns of the McDonald's insider regarding Kempczinski's poor relationship with franchisees - which are the lifeblood of the Golden Arches.

Easterbrook, who received an estimated AU$23 million a year ago, will be replaced by Chris Kempczinski, who recently served as president of the chain's United States operation.