Steve Easterbrook was fired from the fast food giant for an affair. In court, McDonalds fought back the severance payment for the ex-boss. This is said to have lied to McDonald's and behaved inappropriately.
Steve Easterbrook has $ 105 million less in his account.
McDonald's has reached an agreement with Easterbrook in litigation and has received back severance pay worth $ 105 million.
The ex-boss of McDonald's was fired in 2019 because of an affair.
That's what it is about
McDonald's had sued former CEO Steve Easterbrook.
Steve Easterbrook had affairs and was therefore fired in 2019.
Among other things, he is said to have sent nude photos of his business email.
Now Easterbrook has to repay his severance payment.
The fast food chain McDonald’s has reached an agreement in a legal dispute with its boss, Steve Easterbrook, who was fired because of an affair, and received a severance payment of 105 million dollars back.
“The settlement brings Steve Easterbrook to account for his clear misconduct, including the way he has exploited his position as CEO,” said McDonald’s chairman Enrique Hernandez Jr. on Thursday. «The solution avoids lengthy legal proceedings and allows us to go ahead.»
Company «lied to»
Easterbrook was at the end of 2019 because of an amicable affair Company has been fired. The Briton had violated the guidelines of the burger chain. Easterbrook himself admitted a “mistake” back then.
In August 2020, McDonald’s then stated that the CEO had had “sexual relationships” with three other employees before he was fired. He also gave hundreds of thousands of dollars' worth of stock options to one of the women he was having an affair with. The former CEO “lied” to the company and “destroyed evidence of inappropriate personal behavior”.
“Dozens of nude photos”
McDonald’s sued Easterbrook for this and demanded the return of the severance payment that had been made after the dismissal. According to the McDonald’s lawsuit, “dozens of nude, semi-nude or sexually explicit photos and videos of multiple women, including photos of these company employees” were found. Easterbrook had therefore sent the photos from his professional email account to his private email account.
The group argued that if the new information had been known earlier, the company would not have agreed to the contents of the termination agreement. The employment relationship was terminated without any specific misconduct being given as a reason for termination. That's why Easterbrook had received a severance payment.
The ex-CEO apologized for his behavior on Thursday. Sometimes he did not adhere to McDonald’s values and “did not fulfill some of my obligations as the head of the company”.
Easterbrook had received his severance payment in the form of cash and stock options. McDonald’s states the current value of the package at 105 million dollars – around 93 million euros. It's one of the largest refunds in US company history.
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