McDonald’s CEO Steve Easterbrook Fired Over Relationship with Employee

According to CNBC, 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. According to Business Insider, Easterbook will collect at least $675,000 in severance, but is barred from working for any competitors for two years. 

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 McDonald’s Standards of Business Conduct, “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 investing in technology and delivery-focused upgrades. The often expensive changes have worsened tensions among corporate leadership and franchise owners, as not everyone has been on board with movements like third-party delivery. McDonald’s franchisees in the U.S. even formed an independent, self-funded advocacy group 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 Chicago Business in February of 2019. 

Following Easterbrook’s termination, McDondald’s shares are falling, 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 here. 

Image sourced from Twitter as published by other news sources.