Former CEO of McD, Steve Easterbrook, accepted a fine of $400,000 for misrepresenting his firing from the company in 2019. However, he neither admitted nor dismissed the claims. Instead, he agreed to pay the fine. Steve had a consensual relationship with an employee and violated the company’s fraternization policy; on that grounds, he was fired, says the management of McD. However, he was allowed to receive a severance package.
Months later, the company recouped the severance package of $105 million from Easterbrook, claiming that he was the accused. He was further found to have unhealthy relationships with other employees and even lied to cover up them.
Gurbir Grewal, director of the SEC enforcement division, said, “When corporate officers corrupt internal processes to manage their reputations, they breach their fundamental duties to shareholders, who are entitled to transparency and fair dealing from executives,”
The SEC previously found McDonald’s violated the Exchange Act, which prevents companies from material misrepresentations in proxy statements sent to its investors. The SEC seemed to impose a fine on the fast-food giant but is currently on hold as it cooperates with them in the investigation process, Steve.
By filing a lawsuit against the former CEO, the management of Mcdonald’s proves that its values are an integral part of the company’s structure and do not spare any misconduct from happening in the company.
