McDonald’s has filed suit against its ex-CEO, Stephen Easterbrook to recover his two-year severance pay, stock options, and benefits package which is estimated to be worth over $40 million.
They want everything they paid out under his separation agreement returned to the company. They are also blocking Easterbrook from exercising any stock options or selling his stock.
Esterbrook served as CEO from March 2015 untill he was terminated on November 1, 2019, for an inappropriate consensual relationship with an employee. At the time, Easterbrook claimed the relationship was “not physical” and allegedly lied to the Board that there were no other relationships.
The Board subsequently decided to terminate his employment contract “without cause,” to avoid a protracted legal battle, the company said in their legal filing. He was replaced by the president of McDonald’s USA, Chris Kempczinski who is being tasked by the company to usher in a new era of inclusion and higher standards.
The suit was filed on Monday, Aug. 10, with the Court of Chancery of the State of Delaware. This may be the most public corporate airing of dirty laundry in recent memory.
