McDonald's says ousted CEO eligible for six months severance pay

November 05, 2019 09:02
Former McDonald's CEO Steve Easterbrook has been dismissed over a recent consensual relationship with an employee. Photo: Reuters

McDonald’s Corp. said former chief executive Steve Easterbrook is eligible for six months of severance pay as part of his termination agreement with the company, Reuters reports.

The company also said its global chief people officer David Fairhurst will leave McDonald’s, but did not provide any further details.

Fairhurst has been with the company for nearly 15 years, holding key human resources positions, according to his LinkedIn profile.

On Sunday, McDonald’s, the world’s biggest fast-food chain, said it had dismissed Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy.

"In consideration for [severance] benefits, Mr. Easterbrook has agreed to a release of claims in favor of the company," McDonald's said in regulatory filing.

Easterbrook received total compensation of US$15.88 million in 2018, according to a filing.

He would get about US$675,000 in severance after six months, based on his 2018 base salary of US$1.35 million. Easterbrook is also eligible for 18 months of health benefits, the filing showed.

McDonald’s said Easterbrook’s separation agreement contained a two-year post-termination non-competition clause, which is six months longer and more expansive in scope than his existing agreements.

New CEO Chris Kempczinski will have an annual base salary of US$1.25 million, with a target-based bonus of 170 percent of his annual base salary, McDonald’s said.

The Chicago-based company’s shares fell over 3 percent on Monday.

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