McDonald's CEO pushed out after relationship with employee

McDonald's CEO pushed out after relationship with employee

Easterbrook "has separated from the company following the board's determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee".

According to the Wall Street Journal, Easterbrook sent an email to employees Sunday. Easterbrook will also exit the board.

The company's board of directors conducted a review of Easterbrook's actions and voted Friday on his departure.

The company said details of Kempczinski's and Easterbrook's pay would be disclosed in a filing by Tuesday.

In his own message to employees, Kempczinski thanked Easterbrook for recruiting him to McDonald's and said he expected the company to continue its customer-focused growth plan.

But the way McDonald's rolled this out is instructive - and I think will serve as a great example for any other company that has to share bad news.

"You can make a very strong argument that Easterbrook was the best CEO in the restaurant industry", said Michael Halen, who covers the sector for Bloomberg Intelligence.

Easterbrook had been leading McDonald's in an aggressive modernisation plan.

McDonald's said Joe Erlinger, most recently president of global operated markets, is succeeding Kempczinski to oversee McDonald's roughly 14,000 domestic restaurants.

In a letter responding to an inquiry from US Senator Tammy Duckworth, from the chain's home state of Illinois, Easterbrook said the company has improved its policy and is committed "to ensuring a harassment and bias-free workplace".

Meanwhile, Joe Erlinger, president of the global operated markets, will take over Kempczinski's most recent role as president of McDonald's US, effective immediately. "I am energized by this challenge and look forward to guiding McDonald's continued success", he said.

"McDonald's needs to sit down with worker-survivors and put them at the centre of any solution", the group, the Fight for $15 and a Union, said in a statement.

Last year Intel boss Brian Krzanich stepped down for having a consensual relationship with an Intel employee, which was against company rules.

He left in 2011 to become boss of Pizza Express and then Asian food chain Wagamama, before returning to McDonald's in 2013, eventually become its head in the United Kingdom and northern Europe.

At its peak in 2017, he earned USA $21.8 million (£16.8million). He was also elected to the board of directors. He then received $15.9 million in total compensation past year.

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