8/10/2020 McDonald's sues ex-boss Easterbrook over sexual relationships - BBC News

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McDonald's sues ex-boss Easterbrook over sexual relationships

45 minutes ago

REUTERS

McDonald's has taken new legal action against former chief executive Steve
Easterbook, accusing him of lying about sexual relationships with staff.

The company fired Mr Easterbrook last year after finding he had a consensual relationship
with an employee.

But the firm says further investigation found Mr Easterbook had three additional relationships
with staff, about which he lied to the board.

McDonald's is suing to recover his pay-off, reportedly worth $40m (£35m).

The fast food giant said in a filing to regulators that information had "recently come to the
attention of the Board through an employee report", prompting further investigation.

https://www.bbc.co.uk/news/business-53726216 1/11
8/10/2020 McDonald's sues ex-boss Easterbrook over sexual relationships - BBC News

"Based on the results of the investigation, the Board concluded that Mr. Easterbrook lied to
the company and the Board and destroyed information regarding inappropriate personal
behaviour and in fact had been involved in sexual relationships with three additional company
employees prior to his termination, all in violation of company policy," it said.

McDonald's said that had it been aware of this information, it would not have approved the
severance terms.

'Undisputable evidence'
Mr Easterbrook, a UK citizen who grew up in Watford, Hertfordshire, led McDonald's from
March 2015 to November 2019, after previously leading its UK operations.

At the time of his removal in November, McDonald's said it had evidence of only of a non-
physical, consensual relationship, consisting of intimate text messages and video calls.

It agreed to terminate his contact "without cause", fearing a protracted legal battle, according
to the firm's legal filing.

But the new investigation uncovered "undisputable evidence" of three other sexual
relationships, it says.

It says investigators found nude photographs sent from Mr Easterbrook's company email
account as well as messages showing that he approved a grant of company shares worth
hundreds of thousands of dollars to one of the employees "shortly after their first sexual
encounter".

McDonald's said its policies prohibit "any kind of intimate relationship between employees in a
direct or indirect reporting relationship".

Mr Easterbrook could not immediately be reached for comment.

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