McDonald fires CEO for relationship with employee
| Date :05-Nov-2019 |
NEW YORK :
In an email to McDonald’s employees, Easterbrook said his relationship was “a mistake” that violated company policy
MCDONALD’S announced on Sunday that its President and CEO Steve Easterbrook was forced out after showing “poor judgement” by engaging in a “consensual relationship” with an employee. He was replaced by Chris Kempczinski, the President of McDonald’s USA. Kempczinski was also elected to the Board of Directors. “Easterbrook has separated from the company following the board’s determination that he violated company policy and demonstrated poor judgement involving a recent consensual relationship with an employee,” the company said in a statement.
“The company confirms that this leadership transition is unrelated to the company’s operational or financial performance.” In an email to McDonald’s employees, Easterbrook said his relationship was “a mistake” that violated company policy. “Given the values of the company, I agree with the board that it is time for me to move on,” the email said. Joe Erlinger, President of international operated markets, will take over as head of McDonald’s USA, the company said.
In its most recent earnings report, on October 22, McDonald’s said profits dipped 1.8 per cent in the third quarter from the year-ago period to $1.6 billion. Revenues at the company, which has 38,000 restaurants in more than 100 countries, edged up 1.1 per cent to $5.4 billion. The fast-food giant notched a healthy 5.9 per cent increase in global comparable sales, including a solid rise in the United States.