The Securities and Exchange Commission (SEC) has charged former McDonald’s CEO Stephen Easterbrook with making false and misleading statements to investors about the circumstances of his firing in November 2019.
According to the SEC, McDonald’s fired Easterbrook for “engaging in an inappropriate personal relationship with a McDonald’s employee in violation of company policy”. However, the separation agreement claimed “his termination was without cause, which allowed him to retain substantial equity compensation that otherwise would have been forfeited.”
In order to settle the charges, Easterbrook will pay $400,000. The SEC noted that this amount is “not based on any determination of wrongdoing or liability”.
McDonald’s later filed a lawsuit against Easterbrook, alleging that he had covered up three additional relationships with employees and had destroyed evidence of those relationships. The company also accused him of lying to the board of directors about his conduct.
Easterbrook has denied any wrongdoing and has not admitted or denied the SEC’s allegations. The SEC noted that the settlement does not include any admission of wrongdoing or liability.
The SEC’s investigation into Easterbrook’s conduct is ongoing.
Key takeaways:
- The SEC has charged former McDonald’s CEO Stephen Easterbrook with making false and misleading statements to investors about the circumstances of his firing in November 2019.
- Easterbrook will pay $400,000 to settle the charges, though this amount is “not based on any determination of wrongdoing or liability”.
- McDonald’s has filed a lawsuit against Easterbrook, alleging that he had covered up three additional relationships with employees and had destroyed evidence of those relationships. The SEC’s investigation into Easterbrook’s conduct is ongoing.
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