McDonald’s is suing former CEO Steve Easterbrook to recover what he was paid in severance and final compensation, saying he lied to the company about how many romantic relationships he’d pursued with subordinates—the grounds for his dismissal.
Easterbrook had acknowledged at the time he was fired that he’d violated company policy by having an affair with one subordinate. McDonald’s said in a securities filing that it has recently learned of three more sexual relationships with company employees.
“Had the board been aware of this information, it would not have approved the terms of the Separation Agreement dated as of November 1, 2019,” the company said in a securities filing. It is seeking compensatory damages equal to what Easterbrook was paid under that agreement.
Easterbrook walked away with more than $700,000 in exit payments, including 26 weeks of severance pay. He also retained stock options. McDonald’s said in its filing that it would also seek to block the former CEO’s exercise of those options.
Easterbrook could not be reached for comment.