Former CEO Steve Easterbrook is sued by McDonald’s as new information arises on the sexual misconduct pattern.
McDonald’s is suing Steve Easterbrook, former CEO, for new information about sex drive patterns. The company alleges that Easterbrook misled investors when news of its misconduct came to light in November.
- The company fired Easterbrook in November after having an affair with an employee.
- In 2019 alone, the investigation found that Easterbrook had sex with three separate employees.
- In other news, Uber and Lyft ordered to classify their workers as employees.
Now, McDonald’s is suing Steve Easterbrook for his secession package, valued at about $42 million.
Proving bad judgment
The company fired Easterbrook in November after having an affair with an employee. This relationship was consensual, but it violated company policy. At the time, he said he had “revealed a bad judgment” about Easterbrook.
During the fall hearing, Easterbrook said the relationship was an isolated incident. This relationship was completely physical and only involved in having sex for a few weeks. Easterbrook assured the board that he had never had physical contact with an employee.
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Easterbrook is covering it up
This last claim is false. Legal documents filed Monday revealed that Easterbrook had lied about his behaviour and tried hard to cover it up.
McDonald began a second internal investigation in July following an anonymous tip-off. Easterbrook complained that he was involved in physical contact with several employees. In 2019 alone, the investigation found that Easterbrook had sex with three separate employees.
The former CEO has sent “dozens of nude, somewhat nude or sexual photos and videos of various women” from his work email account to his account. Later, he is said to have tried to destroy all sources of these relationships.
The claims are getting worse. In addition to his inappropriate behaviour, he also abused shares of the company. The inquest revealed that Easter Brook “approved an extraordinary share grant worth hundreds of thousands of dollars to one of those employees in the middle of a sexual relationship.”
Why is McDonald’s suing Steve Easterbrook?
What McDonald’s is most annoyed about is not Easterbrook’s sexual misconduct, but his dishonesty to the group of investors. When the board believed Easter Brook’s “bad judgment” was an isolated incident, it approved a $42 million severance package.
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Easterbrook’s lawyers argued that he was entitled to such payment because his dismissal was “unreasonable.”
But it is now clear that he misled the board so much and there was a reason. Therefore, the trustees demand that he return the severance pay underlying the McDonald case.