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Agence France-Presse

McDonald’s announced Sunday that its president and CEO Steve Easterbrook was forced out after showing “poor judgment” by engaging in a “consensual relationship” with an employee.
He was replaced by Chris Kempczinski, the president of McDonald’s USA. Kempczinski was also elected to the board of directors.
“Easterbrook … has separated from the company following the board’s determination that he violated company policy and showed poor judgment involving a recent consensual relationship with an employee,” the company said in a statement.
“The company confirms that this leadership transition is unrelated to the company’s operational or financial performance.”

In an email to McDonald’s employees, Easterbrook said his relationship was “a mistake” that violated company policy.
“Given the values of the company, I agree with the board that it is time for me to move on,” the email said.
Joe Erlinger, president of international operated markets, will take over as head of McDonald’s USA, the company said.
Ted Baker boss Ray Kelvin quits over ‘forced hugging’ claims
In its most recent earnings report, on October 22, McDonald’s said profits dipped 1.8 per cent in the third quarter from the year-ago period to US$1.6 billion.
Revenues at the company, which has 38,000 restaurants in more than 100 countries, edged up 1.1 per cent to US$5.4 billion.
The fast-food giant notched a healthy 5.9 per cent increase in global comparable sales, including a solid rise in the United States.
But profits were pressured by increased spending on technology and research and development.
McDonald’s has invested heavily in home delivery and mobile pay initiatives in recent years, and in 2019 has unveiled a number of acquisitions to boost its drive-through operation.

Kempczinski told The Wall Street Journal on Sunday that he plans to continue the focus on technology.
“There isn’t going to be some radical, strategic shift. The plan is working,” he said.
Easterbrook had served as chief executive since 2015. Under his leadership, McDonald’s share price doubled, but he was unable to stop a decline in sales.
Like other fast food chains, McDonald’s is facing headwinds as consumers seek out healthier dining options.
Intel CEO Brian Krzanich quits over relationship with employee
Easterbrook’s pay as CEO rose with McDonald’s share price, which closed last week at US$194. His compensation hit a peak in 2017 at US$21.8 million, including US$9.1 million in incentive-based pay, the Journal said.
Workplace relationships have cost a number of CEOs their jobs in recent years, and the topic has become even more sensitive amid the #MeToo movement.
Intel CEO Brian Krzanich and yoga apparel brand Lululemon chief Laurent Potdevin resigned from their companies in 2018 following revelations of relationships with employees.
In 2016, Priceline CEO Darren Huston stepped down for the same reason, as did BestBuy CEO Brian Dunn in 2012.
Additional reporting by Reuters


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McDonald's

McDonald’s fires CEO Steve Easterbrook over relationship with employee

In an email to McDonald’s employees, CEO Steve Easterbrook said his relationship was ‘a mistake’ that violated company policy. Photo: AP

McDonald's employees take orders at the Union Square fast-food chain McDonald's in New York, U.S., October 22, 2019. REUTERS/Shannon Stapleton

FILE PHOTO: McDonald's incoming U.S. President Chris Kempczinski speaks during a press conference in New York November 17, 2016. REUTERS/Shannon Stapleton/File Photo

‘This was a mistake,’ Steve Easterbrook said of his actions in an email sent to employees Sunday. Photo: AFP

Ted Baker boss Ray Kelvin quits over ‘forced hugging’ claims

Founder and CEO of Ted Baker, Ray Kelvin, at an event in New York in September 2016. Photo: AFP

FILE PHOTO: Rain drips off a sign on a Ted Baker sign on a store in London, Britain October 06, 2015. REUTERS/Neil Hall/File Photo

FILE PHOTO: Shoppers walk past a Ted Baker store on Regents Street in London, Britain December 17, 2018. REUTERS/Simon Dawson/File Photo

Intel CEO Brian Krzanich quits over relationship with employee

Brian Krzanich (left) speaks with Accel’s partner Joe Schoendorf. Photo: AFP

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The fast food giant said former president and CEO Steve Easterbrook showed poor judgment
Scrutiny of executives and their treatment of employees has intensified amid the #MeToo social media movement



In an email to McDonald’s employees, CEO Steve Easterbrook said his relationship was ‘a mistake’ that violated company policy.


Sex and relationships