Fast-food giant settles lawsuit with former leader, who was dismissed in 2019
McDonald’s has a settled a lawsuit with former CEO Steve Easterbrook, in which the disgraced executive will pay back his severance package of $105 million in cash and equity awards.
Easterbrook was fired in 2019 over his sexual relationships with subordinates, Bloomberg reported. The amount he’s been forced to repay represents the compensation Easterbrook would have forfeited had he been forthcoming about his actions and been fired for cause, McDonald’s said in a press release.
“This settlement holds Steve Easterbrook accountable for his clear misconduct, including the way in which he exploited his position as CEO,” said Enrique Hernandez, Jr., chairman of the board of directors of McDonald’s Corporation. “The resolution avoids a protracted court process and allows us to move forward. It also affirms the board’s initial judgment to pursue this case. With this settlement, company employees, management and the board can continue to focus their attention on the growth of the business and building community both inside and outside the system.”
In August 2020, the Chicago-based fast-food chain filed a lawsuit against Easterbrook for lying to the board about the extent of his relationships with employees. The lawsuit states that the company became aware of Easterbrook's other relationships with employees in July, launching a new investigation which found proof of three sexual relationships.
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