NEW YORK: McDonald’s Corp dismissed chief executive Steve Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy, the fast-food giant said on Sunday.
Easterbrook, who became the chief executive in March 2015, wrote an email to employees, acknowledging the violation.
“This was a mistake. Given the values of the company, I agree with the board that it is time for me to move on.”
The board met Friday and voted to fire Easterbrook after an investigation of his relationship with the employee, the company said. A McDonald’s spokeswoman declined to reveal more details about the relationship or to say when the board found out about it.
Easterbrook, who is divorced and has three daughters, will be replaced by Chris Kempczinski, who most recently served as president of McDonald’s USA.
A spokeswoman for Easterbrook, Desiree Moore, said he was “deeply grateful” for his time at McDonald’s and “acknowledges his error in judgment.”
Easterbrook, 52, had been widely credited with turning around McDonald’s after it posted one of its worst financial performances in years, in 2015.
A native of Watford, England, who previously ran the company’s British business, Easterbrook emphasized technological innovation, striking food-delivery deals with third-party apps Uber Eats and DoorDash and acquiring smaller companies that specialize in machine learning and artificial intelligence. Last year, Easterbrook was paid more than $15 million.
Kempczinski will take over at a time when the broader fast-food industry faces significant headwinds, with Americans turning to healthier options and a tight labor market making hiring difficult.
(Agencies)
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