Exec engaged in sexual relations with employee and hid the truth from stakeholders, says SEC
A former McDonald’s executive is in hot water once again.
The Securities and Exchange Commission (SEC) has charged former company CEO Steve Easterbrook for making false and misleading statements to investors about the circumstances leading to his termination in November 2019.
Easterbrook has consented to entry of the SEC’s cease-and-desist order, which imposes a five-year officer and director bar and a $400,000 civil penalty.
Easterbrook was ousted over a consensual relationship with an employee. However, McDonald’s and Easterbrook entered into a separation agreement that concluded his termination was without cause, according to the SEC.
The deal allowed Easterbrook to retain substantial equity compensation that otherwise would have been forfeited, according to the government body. However, McDonald’s did not disclose the agreement to investors.
In 2020, McDonald’s discovered through an internal investigation that Easterbrook had engaged in other undisclosed, improper relationships with additional McDonald’s employees.
"Public issuers, like McDonald's, are required to disclose and explain all material elements of their CEO’s compensation, including factors regarding any separation agreements," said Mark Cave, associate director of the Division of Enforcement at SEC. "Today’s order finds that McDonald’s failed to disclose that the company exercised discretion in treating Easterbrook...
The SP chief also dismissed the govt’s claims of mobile phone manufacturing in the state, saying only the assembly of devices was taking place with components imported from China, Taiwan and Korea ...