McDonald’s Corp’s chief executive officer has been pushed out of the company after contravening company policy by engaging in a consensual relationship with an employee, the corporation said on Sunday.
The fast-food giant said that former McDonald’s president and CEO Steve Easterbrook demonstrated poor judgment, and that the company forbids managers from having romantic relationships with direct or indirect subordinates.
In an e-mail to employees, Easterbrook said that he had a relationship with an employee and said it was a mistake.
“Given the values of the company, I agree with the board that it is time for me to move on,” Easterbrook said.
McDonald’s board of directors voted on Easterbrook’s departure on Friday after conducting a thorough review.
Details of Easterbrook’s separation package were to be released yesterday in a federal filing, a company spokesman said.
Easterbrook would also be leaving the company’s board. He had been CEO since 2015.
McDonald’s would not provide details about the employee with whom Easterbrook was involved, and an attorney for Easterbrook declined to answer questions.
The board of directors named Chris Kempczinski, who recently served as president of McDonald’s USA, as its new president and CEO.
Two weeks ago, McDonald’s reported a 2 percent drop in net income for the third quarter as it spent heavily on store remodeling and expanded delivery services.
The company’s share price has dropped 7.5 percent since then, although it is still up 9.2 percent for the year.
The burger chain also has been plagued by declining traffic.
The leadership transition is unrelated to the company’s operational or financial performance, the company said in a news release.
Among other challenges at its restaurants, McDonald’s has faced workplace harassment charges.
In May, the company said it was enhancing training and offering a new hotline for workers after a labor group filed dozens of sexual harassment charges against the firm.
Fight for $15, the group which filed the charges, said that McDonald’s response to its sexual harassment complaints has been inadequate, and “the company needs to be completely transparent about Easterbrook’s firing and any other executive departures related to these issues.”
Kempczinski joined McDonald’s in 2015. He was responsible for approximately 14,000 McDonald’s restaurants in the US.
He was instrumental in the development of the company’s strategic plan and oversaw the most comprehensive transformation of the US business in McDonald’s history, Enrique Hernandez, chairman of McDonald’s board, said in a statement.
Kempczinski described Easterbrook as a mentor.
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