Former McDonald’s CEO Stephen Easterbrook unveiled the company’s new corporate headquarters during a grand opening ceremony June 4, 2018 in Chicago
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The Securities and Exchange Commission on Monday charged former McDonald’s CEO Steve Easterbrook with misrepresenting his November 2019 firing.
Easterbrook has agreed to a $400,000 fine, without admitting or denying the claims, and is barred from serving as an officer or director of an SEC-reporting company for five years.
McDonald’s board fired Easterbrook in 2019 over a consensual relationship with an employee that violated the company’s fraternization policy. However, he was not fired for good cause, so he was able to receive severance pay.
Months later, the fast-food giant sued its former chief executive, alleging he committed fraud and lied to cover up further improper relationships with employees. In December 2021, the two parties settled the lawsuit, and McDonald’s successfully recovered Easterbrook’s $105 million settlement.
A rep for Easterbrook declined to comment to CNBC.
“When senior executives corrupt internal processes to manage their personal reputations or to line their own pockets, they are violating their fundamental duties to shareholders, who are entitled to transparency and fair treatment by executives,” said Gurbir Grewal, director of the SEC Division for enforcement. in an opinion.
The agency also found that McDonald’s violated the Stock Exchange Act, which prohibits the company from material misrepresentation and omissions in proxy statements sent to shareholders but does not fine McDonald’s financially for its “substantive” cooperation with the agency during its investigation .
McDonald’s has neither admitted nor denied the SEC’s findings. In a statement, the company said the SEC’s actions reinforce what it previously said about how to deal with Easterbrook’s wrongdoing.
“The company continues to ensure that our values are part of everything we do and we are proud of our strong ‘Speak Up’ culture, which encourages employees to report behaviors by employees, including the CEO, who are behind.” fall short of our expectations,” McDonald’s said.