Stephen Easterbrook, the former CEO of McDonald's, opened the company's new corporate headquarters in Chicago.
McDonald's agreed to claw back Easterbrook's 105 million dollar severance payment after a lawsuit was settled.
In August 2020, the fast-food giant brought a suit against its disgraced former chief executive, accusing him of committing fraud and lying during the company's internal probe into his behavior months earlier. The company's board found Easterbrook had a consensual relationship with an employee and fired him in November 2019. The board still gave him a package that included cash and equity.
In the lawsuit, McDonald's claimed that new information about Easterbrook's actions came to light in July 2020, prompting further investigation. Easterbrook lied to the company and destroyed information about his inappropriate behavior, which included three additional sexual relationships with employees before he was fired.
Easterbrook returned the equity and cash he was awarded in his contract as part of the settlement. He apologized for his actions.
He said in a statement that he failed to uphold McDonald's values and fulfill certain of his responsibilities as a leader of the company. I apologize to my former co-workers, the Board, and the company's franchisees and suppliers.
The lawsuit brought more to light than just Easterbrook's conduct as CEO. It brought more scrutiny to Mcdonald's and its board.
Corporate governance experts questioned the board about why the investigation was completed so quickly and why its server wasn't checked.
The company and board members are accused of breaching their fiduciary duty. CtW Investment Group and New York City Comptroller Scott Stringer were part of a group of shareholders who tried to prevent the re- election of two McDonald's board members.
Chris Kempczinski is the CEO of McDonald's and he has been trying to change the perception of the company by holding town halls with employees and other stakeholders.
The way in which Steve Easterbrook exploited his position as CEO was held accountable by the settlement. The resolution allows us to move forward. The Board's initial judgment to pursue this case was affirmed.
McDonald's has a market value of $204 billion.
