McDonald’s alleges ex-CEO hid improper relationships Suit: Easterbrook accused of sex with employees before firing
McDonald’s says it’s suing Stephen Easterbrook, the CEO it ousted last year over an inappropriate relationship with an employee, alleging Monday that he covered up relationships with three other employees and destroyed evidence.
The company wants to reclaim millions of dollars in compensation paid to him.
“McDonald’s does not tolerate behavior from employees that does not reflect our values,” said McDonald’s President and CEO
Chris Kempczinski, who was promoted following Easterbrook’s departure, in a message to employees Monday.
The lawsuit again puts a spotlight on a yearslong reckoning over sexual harassment at Chicago-based McDonald’s and its 39,000 restaurants.
In the U.S., more than 50 workers have filed separate sexual harassment charges against McDonald’s with the U.S. Equal Employment Opportunity Commission or in state courts.
In his message to employees, Kempczinski said he is committed to making sure that employees are “encouraged and comfortable coming forward with information about any behavior that doesn’t align with our values.”
McDonald’s fired Easterbrook last November after he acknowledged exchanging videos and text messages in a nonphysical, consensual relationship with an employee. Easterbrook told the company there were no other similar instances. An initial search of his cellphone confirmed that.
Based on what the company knew at the time, McDonald’s board approved a separation agreement “without cause” that allowed Easterbrook to keep nearly $42 million in stock-based benefits, according to Equilar, which tracks executive compensation. Easterbrook also collected 26 weeks of pay, amounting to about $670,000.
According to the lawsuit, McDonald’s received an anonymous tip in July that Easterbrook had engaged in a sexual relationship with another employee. After an investigation, McDonald’s confirmed that relationship as well as two other physical, sexual relationships in the year before he was fired. Easterbrook also approved a special grant of restricted stock, worth hundreds of thousands of dollars, to one of those employees, the lawsuit said.
The company said Monday that Easterbrook removed evidence of those relationships — including sexually explicit photos and videos sent from corporate email accounts — from his cellphone, preventing investigators from learning about them prior to his firing. But that evidence remained on the company’s email servers.
McDonald’s didn’t say why those servers weren’t checked during its initial investigation. In the lawsuit, the company says it relied on Easterbrook — its highest ranking executive — to be truthful.
Telephone and email messages seeking comment were left with Easterbrook’s attorney.