Monday, the Securities and Exchange Commission charged former McDonald’s chief executive Stephen Easterbrook with misleading statements about his termination in 2019. Easterbrook will now have to pay a $400,000 civil penalty.
How was the former CEO fired and then fined, and what does this mean for his career?
McDonald’s fired Easterbrook for having an inappropriate relationship with a fellow employee. However, He did not report other violations of the company policy of inappropriate relationships with multiple employees. This is the second time Easterbrook has had to dig into his pockets to pay for the same alleged lie. In 2021, he was made to return over $105 million he received in a severance package from McDonald’s after the fast food giant sued him after learning that he lied about his behavior. Easterbrook’s attorneys are not admitting or denying the findings in the SEC investigation. The SEC also charged McDonald’s with “shortcomings” in its public disclosures of why Easterbrook was fired. However, the company was not fined due to its cooperation in the investigation.

As for Easterbrook’s career, he will not be able to serve as an officer or director for any SEC reporting company for five years.

Add comment