1851

According to <a href="https://www.cnbc.com/2019/11/03/mcdonalds-steve-easterbrook-is-out-as-ceo-due-to-a-consensual-relationship-with-an-employee.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow">CNBC</a>, McDonald’s CEO since 2015, Steve Easterbrook, was ousted and replaced by Chris Kempczinski, the former head of McDonald’s U.S. business. Easterbrook got the axe as a result of carrying on a consensual relationship with an employee, although the company spared any other details of this relationship. As it turns out, McDonald’s has a hard-and-fast rule when it comes to inter-company relationships, and the CEO himself is no exception. <a href="https://www.businessinsider.com/mcdonalds-ceo-cant-work-at-fast-food-rivals-2019-11?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow">According to Business Insider</a>, Easterbook will collect at least $675,000 in severance, but is barred from working for any competitors for two years.&nbsp;But why would a company like McDonald’s be such sticklers about something as harmless as a consensual relationship between two employees? A romantic relationship with a subordinate (which when you’re the CEO, is everyone!) can be seen as a huge conflict of interest that could open the company up to legal troubles down the road. According to the <a href="https://corporate.mcdonalds.com/content/dam/gwscorp/corporate-governance-content/codes-of-conduct/US_English_Sept_2018.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow">McDonald’s Standards of Business Conduct</a>, “Employees are required to report any relationships that may violate the Dating, Nepotism and Fraternization Policy to the Global Compliance Office or Human Resources.”Many of Easterbrook’s biggest initiatives over the past few years included <a href="https://1851franchise.com/mcdonalds-just-upped-the-ante-for-drive-thrus-2710845#franbuzz">investing in technology</a> and <a href="https://1851franchise.com/mcdonalds-dividends-seriously-deliver-on-delivery-2711405#franbuzz">delivery-focused upgrades</a>. The often expensive changes have worsened tensions among corporate leadership and franchise owners, as<a href="https://www.chicagobusiness.com/restaurants/mcdonalds-franchisees-dump-delivery?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow"> not everyone has been on board</a> with movements like third-party delivery. McDonald’s franchisees in the U.S. even formed <a href="https://www.qsrmagazine.com/franchising/franchisees-band-together?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow">an independent, self-funded advocacy group</a> to address some of their concerns. "Our margins do not allow for the commissions that Uber is taking nor the added rent and service fees McDonald's is enjoying," said the organization to <a href="https://www.chicagobusiness.com/restaurants/mcdonalds-franchisees-dump-delivery?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow">Chicago Business</a> in February of 2019.&nbsp;Following Easterbrook’s termination, <a href="https://www.cnbc.com/2019/11/04/mcdonalds-stock-falls-after-firing-ceo-and-announcing-successor.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow">McDondald’s shares are falling</a>, but it has yet to be seen as to what this means for the future of the company. While this isn’t a good look, the company released a statement as reported by CNBC that not much will change, and Kemczinski himself stated that the company would not be planning any kind of “radical, strategic shift.”Read the full CNBC story <a href="https://www.cnbc.com/2019/11/03/mcdonalds-steve-easterbrook-is-out-as-ceo-due-to-a-consensual-relationship-with-an-employee.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491" target="_blank" rel="nofollow">here</a>.&nbsp;Image sourced from Twitter as published by other news sources.&nbsp;

McDonald’s CEO Steve Easterbrook Fired Over Relationship with Employee

1851 Franchise

While the company did not release details of the relationship, the violation of company policy was enough to give even Easterbrook the boot. 


mcdonalds-ceo-steve-easterbrook-fired-over-relationship-with-employee

New U Women's Clinic & Aesthetics

image of New U Women’s Clinic & Aesthetics employees and franchise

How New U Is Redefining Women’s Health, Offering a Scalable Franchise Opportunity as the Next Big Category Creator in the $21 Billion Med Spa Industry

womens-health-wellness-franchise-new-u

image of New U Women’s Clinic & Aesthetics Founder and CEO Dr. Rachel Fidino

The Void in Women’s Health, Solved By a Two Time Cancer Survivor: How New U Built Care that Didn’t Exist and is Eying National Franchise Expansion

new-u-womens-clinic-consumer-positioning

SweatHouz

SweatHouz Expansion - Tribeca Opening and 12 NYC Franchise Units - 1851 Franchise

SweatHouz Franchise Expands Into New York City With 12-Unit Development Agreement Across Manhattan and Brooklyn

sweathouz-new-york-tribeca-expansion

DoodyCalls

How This Family Built a Fast-Growing DoodyCalls Business in Greensboro, North Carolina

families-in-franchising-robert-thomas-doodycalls-greensboro

Sparkle Squad Window Cleaning Services

Sparkle Squad Franchise - Ryan Fraser - Franchisee Feature - 1851 Franchise

Commercial Real Estate Veteran Leverages Commercial Work To Grow Sparkle Squad Franchise

sparkle-squad-franchise-new-jersey-ryan-fraser

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

hardees-franchise-closures-arc-burger-lawsuit

Domino's Franchise - North Pole - Dec 2025 - 1851 Franchise

Domino’s Pizza Brings Delivery Cheer to North Pole, Alaska

dominos-pizza-franchise-north-pole-alaska

California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

california-pizza-kitchens-sale-is-the-latest-in-the-era-of-pe-backed-turnarounds-in-franchising

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

As Starbucks and Dunkin’ Navigate a Changing Market, New Coffee Players Keep Gaining Ground

starbucks-dunkin-franchise-coffee-market-trends

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Supplies and Retail Franchises for 2025

the-top-15-pet-supplies-and-retail-franchises

Scenthound Franchise Costs, Fees, Profit and Data for 2025

scenthound-franchise-costs-fees-profit-and-data

Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

ellianos-coffee-franchise-costs-fees-profit-and-data

Sparkle Dog Care Franchise Costs, Fees, Profit and Data for 2025

McDonald’s CEO Steve Easterbrook Fired Over Relationship with Employee

MORE STORIES LIKE THIS