Yahoo Finance McDonald’s CEO sacked for ‘consensual’ affair with employee
McDonald’s $23 million CEO, Steve Easterbrook, has been sacked after confirming he had been engaging in an affair with an employee.
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In a statement on Sunday, McDonald’s said Chris Kempczinski has been named the new CEO after the board agreed Easterbrook has “violated company policy” and “demonstrated poor judgment” by having the consensual affair.
McDonald’s bans all romantic relationships between managers and direct and indirect reports.
Easterbrook made US$15.9 million (AU$22.9 million) in 2018 – that’s 2,124 times the median employee salary.
In an email to staff, Easterbrook – who is divorced – said he agreed that it was “time for him to move on”, given the company’s values.
The British businessman first joined McDonald’s in 1993 as a manger in London, and was appointed CEO in 2015.
McDonald’s is due to release the details of Easterbrook’s severance package on Monday US time.
“Steve brought me into McDonald's and he was a patient and helpful mentor," Kempczinski said in a statement.
Kempczinski is recognised for leading the US rollout of McDonald’s on Uber Eats, telling Yahoo Finance US that “we expect delivery to keep growing”.
"Chris takes the reins of this great company at a time of strong, sustained performance, and the Board has every confidence that he is the best leader to set the vision and drive the plans for the Company's continued success,” said Enrique Hernandez Jr., chairman of McDonald's board of directors.
“He has the right mix of skills and experience to lead us forward having run our U.S. business, where franchisees are delivering strong financial and operational results, and overseen global strategy, business development and innovation.
“In particular, Chris was instrumental in the development of the Company's strategic plan, which has enabled global growth and leadership, and has overseen the most comprehensive transformation of the U.S. business in McDonald's history.”
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