McDonalds’ Easterbrook…He Loved It
Steve Easterbrook is the former CEO of McDonalds who served as the chief for about 3 1/2 years. Steve left McDonalds about 8 months ago with a nice little $40M going away present. Not a bad gig if you can get it! It’s important to note that Steve was dismissed from his duties “without cause”. So what led to his dismissal?
An internal investigation revealed he had a consensual relationship with a McDonalds employee. And, in doing so, it was judged he’d shown poor judgment. He’s British too. It’s not completely relevant but at the same time it absolutely is. Cheeky…
He doubled the share price of McDonalds during his tenure. He violated company policy. In the era of corporate culture we live in you can’t have the CEO salaciously galavanting around the hallways (allegedly). So off goes Steve into the golden sunset “without cause” and $40M because executive pay agreements tend to have very narrow grounds for “with cause” dismissals.
Fast forward 9 months. McDonalds is suing their former chief! This is pretty rare! You can read more about the case in original form here or via some reputable reporting here.
The plot has thickened.. It turns out Steve (allegedly) had more than one McDonalds employee relationship! Physical ones too. He couldn’t have just one (allegedly). He had to have fries with it! Couldn’t resist, sorry.
McDonalds & their board want that $40M back. Not an expert here but you’d have to imagine the PR & legal costs far outweigh the benefits of recouping the $$? So why do it?
They’re pissed! Why would they be so pissed? Is it because of his philandering (allegedly) ways? Could be. That’s definitely part of it. Although there is probably a more likely explanation.
He lied.
Are we saying lying is worse than philandering (allegedly)? Nope, not us. But McDonalds kinda is.. They can’t be too pumped about the shares he awarded one of the women either. How romantic. Actually kind of cheap right? Cuz it wasn’t like he was the one footing the bill. Steve you sly devil!
Sometimes it seems like the bar is so low. Be honest and up front. Maybe go fish in a different pond? We’ll be watching for more learnings. Good luck in court y’all.