2nd McDon­ald’s ex­ec­u­tive out af­ter CEO fired

Burger giant wouldn’t say if HR boss exit con­nected to ter­mi­na­tion of chief

The Peterborough Examiner - - BUSINESS -

CHICAGO—McDon­ald’s has lost an­other top ex­ec­u­tive.

The Chicago-based burger giant con­firmed Mon­day that “chief peo­ple of­fi­cer” David Fairhurst has left the com­pany, ef­fec­tive im­me­di­ately. McDon­ald’s wouldn’t say whether Fairhurst’s de­par­ture was con­nected to the fir­ing of CEO Steve Easterbroo­k. The com­pany an­nounced Sun­day that Easterbroo­k was fired for vi­o­lat­ing com­pany pol­icy by hav­ing a con­sen­sual re­la­tion­ship with an em­ployee.

In a fil­ing with the U.S. Se­cu­ri­ties and Ex­change Commission, McDon­ald’s said Easterbroo­k will re­ceive 26 weeks of pay but for­feit mil­lions in un­vested stock op­tions as part of his sev­er­ance agree­ment.

Easterbroo­k’s 2018 com­pen­sa­tion to­talled $15.9 mil­lion (U.S.). That in­cluded $1.3 mil­lion in salary and the rest in stock op­tions and in­cen­tive pay­ments.

Un­der his sev­er­ance agree­ment, Easterbroo­k will be el­i­gi­ble for a pro-rated in­cen­tive pay­ment for the 2019 fis­cal year. He can also ex­er­cise stock op­tions that have vested or will vest within three years.

At the end of 2018, Easterbroo­k had un­vested op­tions worth $21.8 mil­lion.

Easterbroo­k is also for­bid­den from work­ing for a com­peti­tor for two years.

McDon­ald’s board named Chris Kem­pczin­ski as the com­pany’s new pres­i­dent and CEO. Kem­pczin­ski most re­cently served as pres­i­dent of McDon­ald’s U.S. di­vi­sion. McDon­ald’s said Mon­day that Kem­pczin­ski’s base salary will be $1.25 mil­lion, or 58 per cent higher than his 2018 com­pen­sa­tion.

An­a­lysts said Mon­day that Kem­pczin­ski — who joined McDon­ald’s from Kraft in 2015 — will likely fol­low the path laid out by Easterbroo­k, in­clud­ing re­design­ing U.S. stores to make them more dig­i­tally savvy and test­ing voice-based tech­nol­ogy at drive-thrus.

“We be­lieve these ini­tia­tives will con­tinue largely un­changed and Mr. Kem­pczin­ski’s legacy will hinge on his abil­ity to gen­er­ate traf­fic growth in the U.S., which nei­ther of his two pre­de­ces­sors were able to achieve,” BTIG man­ag­ing di­rec­tor Peter Saleh said in a note to in­vestors.

McDon­ald’ shares fell 3 per cent to $188.72 in early af­ter­noon trad­ing.

RICHARD DREW THE AS­SO­CI­ATED PRESS FILE PHOTO

McDon­ald’s said fired CEO Steve Easterbroo­k will re­ceive 26 weeks of pay but for­feit mil­lions in un­vested stock op­tions.

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