McDonald's Ex-CEO Pays $105M To Settle Suits Over Sexual Relationships With Employees

The former CEO of McDonald's Corp. paid over $105 million and apologized to the company in a settlement over the burger chain's allegations that he lied to cover up sexual relationships with employees, Hillary Russ and Uday Sampath reported for Reuters.

Photo Insert: Steve Easterbrook was CEO of McDonald's from 2015-2019

As part of the settlement, ex-CEO Steve Easterbrook returned equity awards and cash worth over $105 million that he received as a severance package in 2019, McDonald's said in a statement on Thursday.

McDonald's sued Easterbrook in August 2020, nine months after reaching a severance deal, claiming he never gave directors a complete picture of his relationships with employees.

The company said that when it fired Easterbrook, it only knew of one non-physical consensual relationship with an employee. But an anonymous tip after his ouster led to the discovery of dozens of sexually explicit photos of women, including three employees, that Easterbrook sent to his personal email from his company account.

In his response to the lawsuit at the time, Easterbrook had claimed that McDonald's had information about his relationships on its computer systems when it negotiated his severance package.

"Today's resolution avoids a protracted court process and moves us beyond a chapter that belongs in our past," McDonald's Chairman Enrique Hernandez Jr. said in a message to employees seen by Reuters. McDonald's said it would dismiss its action against Easterbrook with prejudice.

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