McDonald’s CEO Stepdown

McDonald%27s+CEO+Stepdown

Another day, another scandal. And this time, it involves one of the largest fast-food chains in the world. One would be referring, of course, to the golden “M” arched giant named McDonalds. This company is in hot water once again, but this time it does not involve any of the menu items or even the restaurants themselves. Instead, the scandal revolves around the CEO of the company. Steve Easterbrook, the aforementioned CEO, was forced out of the position by the board because they determined that Easterbrook violated company policy. Easterbrook has been the CEO since 2015. The policy violated was the rule that employees can not have a consensual relationship with other employees or subordinates. David Fairhurst, who was the company’s chief people officer, was also forced out of his position for the same reason. Immediately after the removal, Chris Kempczinski will take both positions within the company\; furthermore, this change was put in place right after the board’s decision.
Easterbrook has shown remorse since his forced removal from his position. Even going so far to say, “As for my departure, I engaged in a recent consensual relationship with an employee, which violated McDonald’s policy… This was a mistake.” The late CEO even described his time in the position as “the most fulfilling years of my working life.” Even with the regret-present poor judgment, Easterbrook agrees that the company made the right choice. Easterbrook said in an email that “Given the values of the company, I agree with the board that it is time for me to move on.” The financial information for after his removal has been released. Easterbrook will receive “26 weeks severance pay, in addition to prorated bonuses as warranted.” As part of the resignation, which he gave on October 31, Easterbrook cannot “work for a competitor or poach any McDonald’s employees for two years after leaving the company.”
In regards to the new CEO, the board has expressed high hopes for Kempczinski’s ability to lead. “Chris takes the reins of this great company at a time of strong, sustained performance,” stated Enrique Hernandez Jr., who is chairman of McDonald’s board of directors. Hernandez Jr. continued with “The board has every confidence that he is the best leader to set the vision and drive the plans for the company’s continued success.” Even with the board’s confidence in the new management, McDonald’s now has an uncertain future ahead of it. Hopefully, the new CEO with have better judgment than the previous, or he will not last long.

Sources:
https://www.cnn.com/2019/11/03/business/mcdonalds-ceo-steve-easterbrook-steps-down/index.html

https://apnews.com/7b8aa56cb9194edc8802093085f4c254

Image Retrieved:

https://www.latimes.com/business/story/2019-11-03/mcdonalds-ceo-steve-easterbrook-steps-down