McDonald’s CEO out for consensual relationship with employee, company says

McDonald's CEO fired over consensual relationship with employee, board says

Easterbrook "has separated from the company following the board's determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee".

McDonald's directors voted on Easterbrook's departure on Friday, after conducting a review.

McDonald's announced that Easterbrook would be immediately replaced by Chris Kempczinski, the president of McDonald's USA.

"Steve brought me into McDonald's and he was a patient and helpful mentor", Kempczinski said of his predecessor.

Under his stewardship, the company's shares have nearly doubled in value. Franchisees started an independent association previous year to push back against some of Easterbrook's changes. "No, not at all".

With Easterbrook's ouster, the burger chain loses a key architect of its push into electronic ordering and delivery - parts of the business where it was threatening to lag behind competitors such as Burger King.

Meanwhile, Joe Erlinger, president of the worldwide operated markets, will take over Kempczinski's most recent role as president of McDonald's United States of America, effective immediately.

"There isn't going to be some radical, strategic shift", he told The Journal on Sunday. "The plan is working", he said. He also said he looked forward to continuing to discuss concerns with franchisees. He also joined the McDonald's board.

More than 90 percent of the locations are franchised, and McDonald's has long maintained it should not be liable for how employees in franchised restaurants behave.

Like other fast food chains, McDonald's is facing headwinds as consumers seek out healthier dining options. Labor organisers and some lawmakers have called on the company to address workplace harassment issues and raise its minimum wage to $15 an hour.

McDonald's said it's bolstered training practices and protocol over the past year. Another proposed benefit: Improving speed-to-market by managing complexity and improving decision making, the company said.

McDonald's is expected to disclose financial information related to Mr Easterbrook's dismissal in a securities filing as soon as Monday (local time), the company said.

McDonald's has not shared details of the relationship that led to Steve Eastbrook's firing.

When bad news happens - and no matter how this turns out for McDonald's in the future, it's bad news to have to fire your CEO for a relationship with an employee - you want to put it behind you as quickly as you can.

"I'm seeing more companies ask about them", Segal said.

Easterbrook collected a total of $21.8 million in 2017 ($9.1 million in incentive-based pay).



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