Mcdonald’s boss sacked after affair is charged by regulator

THE former Mcdonald’s boss who was sacked after he admitted to an “inappropriate” affair with an employee has been charged with misleading investors by US regulators.

Steve Easterbrook, the British businessman who led the fast-food chain from 2015 until 2019, has been barred from serving as a company officer or director for five years by the US Securities and Exchange Commission.

He has also been fined $400,000 (£328,000) for making false and misleading statements to shareholders about the circumstances surrounding the termination of his contract in November 2019.

Mcdonald’s and Mr Easterbrook entered a separation agreement in 2019 that concluded his termination was “without cause” – allowing Mr Easterbrook to retain a severance package worth tens of millions of dollars.

However, the following year Mcdonald’s received an anonymous tip claiming he had a sexual relationship with at least one employee. A subsequent internal investigation found he also had sexual relationships with another two staff members, prompting Mcdonald’s to launch legal action against Mr Easterbrook for breaching his duties.

He eventually handed back his $105m severance package in December 2021.

Mr Easterbrook, who is originally from Watford, started his working life as an accountant but swapped his career to work in a Mcdonald’s restaurant in 1993. By the age of 38 he was running Mcdonald’s in the UK before becoming the company’s global boss in 2015.

Gurbir Grewal, director of the SEC’S division of enforcement, said: “By allegedly concealing the extent of his misconduct during the company’s internal investigation, Easterbrook broke that trust with – and ultimately misled – shareholders.”

Mr Easterbrook has not admitted nor denied the SEC’S findings.

The SEC has also charged Mcdonald’s for “shortcomings in its public disclosures” around Mr Easterbrook’s termination, although the chain will not be fined.

Mr Easterbrook did not respond to requests for comment.