Continued Push For Accountability After McDonald’s Sues Ex-CEO

Monday, August 24, 2020
By Neanda Salvaterra, Karma

McDonald’s fired Mr. Easterbrook in November of last year after an investigation found he violated company policy by engaging in a consensual relationship with one employee.

Easterbrook admitted to the breach of conduct for the sole incident at the time and was allowed to walk away with a compensation package that’s estimated to include $675,000 in cash and over $28 million in unvested options. After new allegations Easterbrook failed to inform the company about his relationships with several other employees, McDonald’s filed a lawsuit in August in Delaware-based court to recoup parts of his compensation.

“McDonald’s stands by its complaint, both the factual assertions and the court in which it was filed,” a company spokesperson told Karma in an emailed interview.

Easterbrook’s attorney did not respond to a request for comment.

Investors including CtW, which represents union pension plans that are shareholders in McDonald’s, voted against Easterbrook’s pay package at the company’s annual shareholder meeting in May.

Investors were critical of the company’s decision to fire Easterbrook without citing a cause, allowing him to exit with the compensation, at a time when the COVID-19 pandemic prompted some McDonald’s employees to protest over unsafe working conditions and raise complaints of sexual harassment at some of the fast food chain’s franchises. 

Read the full story from Karma

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