McDonald's sacks CEO Stephen Easterbrook for having affair with employee and violating company policy
On Friday, November 1, Easterbrook's golden run in McDonald's came to a halt as the company board voted in favor of his ouster in a review
Fast-food giant McDonald's has sacked its British Chief Executive Officer (CEO) Stephen Easterbrook because he was in a relationship with an employee of the company.
Although the affair was said to be consensual, it still reflected Easterbrook's violation of the company policy and shows his "poor judgment".
In an email to staff members, the 52-year-old Easterbrook acknowledged that it was a mistake on his part. "Given the values of the company, I agree with the board that it is time for me to move on," he said.
A divorcee, Easterbrook led McDonald's to see a phenomenal rise after he took over as the CEO in 2015.
Having first worked for the company as a manager in London in the early 1990s and leaving in 2011, Easterbrook returned in 2013 and helped the company's profit margin go up by more than 12 percent in just nine months after taking over as the CEO.
He also saw the company’s shares double during his stint at the helm. The businessman worked with Pizza Express followed by Asian food chain Wagamama before returning to McDonald's.
While Easterbrook revitalized the company's menus and restaurants, he also emphasized on delivery and mobile-payment options to make it more convenient for the customers.
However, on Friday, November 1, Easterbrook's golden run in McDonald’s came to a halt as the company board voted in favor of his ouster in a review. The company doesn't allow its managers to get romantically involved with a subordinate and Easterbrook was found violating the same.
Easterbrook's severance package
The fast-food giant was set to release the details of the severance package of its ousted CEO on Monday, November 4.
The man drew a massive compensation from the company that went up to $21.8 million in 2017, including $9.1 million in incentive-based pay. Last year, he pocketed $15.9 million in total compensation which even brought him under scrutiny.
McDonald's has named Chris Kempczinski as the new president and CEO replacing a disgraced Easterbrook.
Kempczinski was recently the president of McDonald's USA and played a key role in developing its strategic plan and overseeing the most comprehensive transformation of the US business in the company's history, according to Enrique Hernandez, chairman of McDonald's board.
Kempczinski though did not forget to mention about his predecessor mentoring him. "Steve brought me into McDonald's and he was a patient and helpful mentor," Daily Mail quoted him as saying.
The new CEO also told the Wall Street Journal on Sunday, November 3, that he will look to continue with Easterbrook's emphasis on technology.