McDonald’s sacked CEO returns $105 million severance deal over misconduct

McDonald’s ex-CEO Steve Easterbrook has returned equity awards and cash worth over $105 million over his relationship scandals with staff, thus ending a year-long lawsuit with the fast-food chain.

According to reports, Easterbrook, 59, was asked to return his severance package after it was discovered that he lied about his sexual relationship with three staff.

The British businessman was fired in November last year after admitting to having a close relationship with one employee.

The fast-food chain had said that he was sacked for his "lies and misconduct."

But further investigation revealed that he had hidden two more relationships, following which the firm asked Easterbrook to forfeit his payments.

“This settlement holds Steve Easterbrook accountable for his clear misconduct, including the way in which he exploited his position as CEO," McDonald's Chair Enrique Hernandez, Jr., said in a statement.

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“The resolution avoids a protracted court process and allows us to move forward.”

McDonald’s said Easterbrook lied and hid information regarding inappropriate personal behaviour and relationships with employees, adding that he had also provided stock worth hundreds of thousands of dollars to one of those employees.

“I apologise to my former co-workers, the board and the company's franchisees and suppliers for doing so,” Easterbrook said in a statement.

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"During my tenure as CEO, I failed at times to uphold McDonald's values and fulfil certain of my responsibilities as a leader of the company," he said.

Easterbrook was appointed CEO in March 2015, and was widely credited with boosting the burger chain's fortunes.

In 2018, his base pay was $1.3 million and his total compensation including bonus and stock options was $15.9 million.

(With inputs from agencies)