McDonald’s Former CEO Returned His Severance Pay of $105 Million

McDonald's

McDonald’s former CEO, Steve Easterbrook, had to return his severance pay as part of the settlement over a lawsuit that alleged sexual relationships with his employees.

According to an article in Business Insider, the McDonald’s Chairman stated that the company filed a lawsuit against Easterbrook in 2020 to hold him accountable for lies, misconduct and his exploitation of his position as CEO.

Easterbrook lost his job in 2019 after McDonald’s conducted an investigation that uncovered  violations of company policy, poor judgement and engagement in a consensual relationship with an employee.

As a result of the scandal, the company lost $4 billion in value and its Chief People Officer.

However, McDonald’s sued Easterbrook in 2020, stating that he covered up sexual relationships with company employees.

Moreover, the company has stated in its filing that the settlement holds Easterbrook accountable for misconduct, lies and attempts to hinder the investigation.

Accordingly, Easterbrook has repaid his severance – cash and equity awards and apologized to his former employees, board, suppliers and franchisees for failing to uphold the company values and fulfill his responsibilities.

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