London Daily

Focus on the big picture.
Saturday, May 31, 2025

McDonald's ex-boss Stephen Easterbrook charged with misleading investors after sacking over romance with employee

McDonald's ex-boss Stephen Easterbrook charged with misleading investors after sacking over romance with employee

Stephen Easterbrook was fired as chief executive officer of the fast-food chain in 2019, but a separation agreement meant he was allowed to keep hundreds of millions of dollars.

The British former boss of McDonald's has been charged in the US with making false and misleading statements to investors over relationships he had with employees at the fast food giant.

Stephen Easterbrook, 56, was sacked as chief executive officer in November 2019 after having an inappropriate personal relationship with a McDonald's employee in a violation of company policy.

The separation agreement with McDonald's, however, allowed him to keep millions of dollars of substantial equity compensation, which otherwise would have been forfeited, as it said his termination was without cause.

The Securities and Exchange Commission (SEC) said that Mr Easterbrook's separation agreement was valued at more than $40m (£32.8m).

Through an internal investigation, McDonald's later found that Mr Easterbrook had other undisclosed, improper relationships with additional McDonald's workers in July 2020.

The burger chain sued him in August 2020, claiming he covered up relationships with employees and destroyed evidence.

Mr Easterbrook was either aware or was reckless in not knowing that his failure to disclose additional violations of company policy before his sacking would influence McDonald's disclosures to investors related to his exit and compensation, the SEC said.

Gurbir Grewal, director of the SEC's enforcement division, said: "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.

"By allegedly concealing the extent of his misconduct during the company's internal investigation, Easterbrook broke that trust with - and ultimately misled - shareholders."

Mr Easterbrook has not admitted or denied the SEC's findings, but has agreed to the agency's cease-and-desist order, which imposes a five-year officer and director ban as well as a $400,000 (£328,000) civil penalty.

The SEC also charged McDonald's with failing to disclose it exercised its own discretion in terminating Mr Easterbrook without cause.


McDonald's.

But the US federal regulator did not fine the fast-food chain, citing its cooperation throughout its investigation and its successful efforts to recover Mr Easterbrook's compensation.

In late 2021, Mr Easterbrook agreed to send back $105m (£86.2m) in cash and stock awards to the company.

"The SEC's order reinforces what we have previously said: McDonald's held Steve Easterbrook accountable for his misconduct," the SEC said.

"We are proud of our strong 'speak up' culture that encourages employees to report conduct by any employee, including the CEO, that falls short of our expectations."

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×