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Made By: Gal Dahan

Steve
Easterbrook
• President and chief executive of
McDonald’s from 2015-2019
• Led McDonald’s to a variety of great
achievements such as:
• Remodeled stores to include digital
menu boards
• Improved the drive-thru by acquiring
artificial intelligence (different sale
techniques like self awareness )
• started selling 
fresh beef quarter pounders
Thanks to
this guy
McDonald’s’
Stock has
roughly
doubled since
2015
CRISIS
In October 2019, McDonald’s found out that Easterbrook was
engaged in consensual relationship with an employee
OOPS
 Some Key Issues…
• How did McDonald’s find out?
• McDonald’s response:
“Easterbrook demonstrated poor
judgment involving a recent
consensual relationship with an
employee”
• Easterbrook response: “As for my
departure, I engaged in a recent
consensual relationship with an
employee, which violated
McDonald’s policy. This was a
mistake. Given the values of the
company, I agree with the board
that it is time for me to move on.
Beyond this, I hope you can respect
my desire to maintain my privacy”.
 McDonald’s’ Solutions To The Crisis
• Easterbrook has been “separated” from
the company and has been replaced in
both roles by Chris Kempczinsk (was the
president of McDonald’s USA)
• Termination agreement in which
Easterbrook cannot work for a
competitor or poach any McDonald’s
employees for two years after leaving
the company.
• Will receive 26 weeks severance pay, in
addition to prorated bonuses as
warranted.
Crisis Solved??
Not really…
• Eight months later, another McDonald’s employee said that
Mr. Easterbrook had a sexual relationship with another
subordinate while he was running the company.
• Resulted in an action in which McDonald’s filed a lawsuit
against Mr. Easterbrook, accusing him of lying, concealing
evidence and fraud.
• And the company repeated…:
“McDonald’s does not
tolerate behavior from
any employee that does
not reflect our values.”
“As we recommit to our
values, now, more than
ever, is the time to lean
in to what we stand for
and act as a positive
force for change”
• As the company dug in dipper, they found out that
Easterbrook was engaged in three different
consensual relationships with employees during his
time as a CEO.
• The consensual relationship consisted sexually
explicit text messages, photographs and at least one
FaceTime call with him, but nothing physical.
• They also found “dozens of nude, partially nude, or
sexually explicit photographs and videos of various
women, including photographs of these company
employees” on his private email account.
• The last update from February 2nd suggested
that the case is still not closed, and the lawsuit
is still ongoing.

• I think that…
References
• Bronner, W., D. (2019, November 4). McDonald’s CEO Steve Easterbrook is out for
‘consensual relationship with an employee’. CNN BUSINESS.
https://www.cnn.com/2019/11/03/business/mcdonalds-ceo-steve-easterbrook-steps-
down/index.html
• Enrich, D. and Abrams, R. (2020, August 10). McDonald’s Sues Former C.E.O., Accusing
Him of Lying and Fraud. The New York Times.
https://www.nytimes.com/2020/08/10/business/mcdonalds-ceo-steve-easterbrook.html
• Maze, J. (2021, February 2). JUDGE REFUSES TO DISMISS MCDONALD’S LAWSUIT
AGAINST STEVE EASTERBROOK. RESTAURANT BUSINESS.
https://www.restaurantbusinessonline.com/leadership/judge-refuses-dismiss-
mcdonalds-lawsuit-against-steve-easterbrook