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Steve Easterbrook: McDonald’s sues ousted CEO over alleged relationships with employees

Oliver O'Connell
·1-min read
Steve Easterbrook, who became CEO in 2015, said the consensual relationship had been a mistake: AP
Steve Easterbrook, who became CEO in 2015, said the consensual relationship had been a mistake: AP

McDonald’s is suing its former CEO, ousted in 2019 over an inappropriate relationship with an employee, after allegations surfaced of further misconduct.

In a lawsuit filed on Monday, Steve Easterbrook is said to have covered up relationships with three other employees, even approving a special grant of restricted stock to one, worth hundreds of thousands of dollars.

The company is seeking to recoup stock options and other compensation that it allowed Mr Easterbrook to keep when he left the company in November.

McDonald’s fired Mr Easterbrook after he acknowledged a consensual non-physical sexting relationship with a subordinate. He told the company that there were no other similar instances.

Based on that information, the board approved a separation agreement "without cause" that allowed Mr Easterbrook to retain almost $42m in stock-based benefits , according to Equilar, which tracks executive compensation.

He also received 26 weeks of pay, amounting to $670,000.

In the lawsuit, filed in Delaware, the company says that it was notified of sexual relationships between Mr Easterbrook and three additional employees that took place prior to his termination.

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