NEW YORK — McDonald’s former CEO Stephen Easterbrook has been charged by federal regulators with making false and misleading statements to investors about the circumstances leading to his firing in November 2019.
Easterbrook was ousted for engaging in an inappropriate personal relationship with a McDonald’s employee in violation of company policy, the Securities and Exchange Commission said in its order Monday, but the separation agreement with McDonald’s concluded that his termination was without cause, which allowed him to keep substantial equity compensation that otherwise would have been forfeited.
“When corporate officers corrupt internal processes to manage their personal reputations or line their own pockets, they breach their fundamental duties to shareholders, who are entitled to transparency and fair dealing from executives,” said Gurbir Grewal, the SEC director of the Division of Enforcement. “By allegedly concealing the extent of his misconduct during the company’s internal investigation, Easterbrook broke that trust with – and ultimately misled – shareholders.”
McDonald’s Corp. was also charged by the SEC for the incident, it said Monday, but due to its cooperation during the ensuing investigation, there is no financial penalty.
