The Chief Executive Officer of McDonalds since 2015, Steve Easterbook was voted out for having a romantic relationship with a company employee. As per the company policy, no Management member was allowed to have a relationship with any direct or indirect subordinates.
McDonald’s board said that Easterbook’s act demonstrated his poor Judgement, given that he knew McDonald’s clearly forbid Managers’ engagement in relationship with employees. The vote was conducted after a thorough review and further details is to be released today.
The former CEO and president agreed with the same in an email sent to the employees, accepting his relationship, and stating that ‘given the values of the company, I agree with the board that it was time for me to move on.’
There is no disclosure whatsoever as of the employee with whom the former CEO was involved with.
A few weeks ago, the company had disclosed a 2% drop in the revenue at the close of third quarter. However, in a news release, the company confirmed that the leadership transition had nothing to do with the company’s performance.
Meanwhile, the McDonald’s board of directors have named Chris Kempczinski the new president and CEO of MCD. Kempczinski has served as the president of McDonald’s USA.