This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-53726216
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| McDonald's sues ex-boss Easterbrook over alleged sexual relationships | McDonald's sues ex-boss Easterbrook over alleged sexual relationships |
| (about 16 hours later) | |
| McDonald's has taken new legal action against former chief executive Steve Easterbrook, accusing him of lying about sexual relationships with staff. | |
| The company fired Mr Easterbrook last year after finding he had a consensual relationship with an employee. | The company fired Mr Easterbrook last year after finding he had a consensual relationship with an employee. |
| But the firm says further investigation found the British executive had three additional relationships with staff, about which he lied to the board. | But the firm says further investigation found the British executive had three additional relationships with staff, about which he lied to the board. |
| McDonald's is suing to recover his pay-off, reportedly worth $40m (£35m). | McDonald's is suing to recover his pay-off, reportedly worth $40m (£35m). |
| The fast food giant prohibits "any kind of intimate relationship between employees in a direct or indirect reporting relationship". | The fast food giant prohibits "any kind of intimate relationship between employees in a direct or indirect reporting relationship". |
| At the time of Mr Easterbrook's removal in November, McDonald's said it had evidence of only of a non-physical, consensual relationship, consisting of intimate text messages and video calls. | At the time of Mr Easterbrook's removal in November, McDonald's said it had evidence of only of a non-physical, consensual relationship, consisting of intimate text messages and video calls. |
| It agreed to terminate Mr Easterbrook's contract "without cause", fearing a protracted legal battle, according to the firm's legal filing. | |
| But after receiving a tip from an employee in July, the fast food giant started a second investigation, which uncovered "undisputable evidence" of three other sexual relationships. | But after receiving a tip from an employee in July, the fast food giant started a second investigation, which uncovered "undisputable evidence" of three other sexual relationships. |
| It says investigators found nude photographs sent from Mr Easterbrook's company email account as well as messages showing that he approved a grant of company shares worth hundreds of thousands of dollars to one of the employees "shortly after their first sexual encounter". | It says investigators found nude photographs sent from Mr Easterbrook's company email account as well as messages showing that he approved a grant of company shares worth hundreds of thousands of dollars to one of the employees "shortly after their first sexual encounter". |
| McDonald's said that had it been aware of this information, it would not have approved his multi-million dollar pay-off. | McDonald's said that had it been aware of this information, it would not have approved his multi-million dollar pay-off. |
| 'Undisputable evidence' | 'Undisputable evidence' |
| McDonald's said it did not initially find the photos and messages because Mr Easterbrook had deleted them from his phone. The second investigation also searched company servers. | McDonald's said it did not initially find the photos and messages because Mr Easterbrook had deleted them from his phone. The second investigation also searched company servers. |
| It said Mr Easterbrook violated his duty to the company by lying when asked about his behaviour in an effort to secure a bigger severance package, committing fraud. | It said Mr Easterbrook violated his duty to the company by lying when asked about his behaviour in an effort to secure a bigger severance package, committing fraud. |
| Mr Easterbrook, who is divorced, could not immediately be reached for comment. At the time of his dismissal, he acknowledged a relationship in an email to staff, calling it a "mistake". | Mr Easterbrook, who is divorced, could not immediately be reached for comment. At the time of his dismissal, he acknowledged a relationship in an email to staff, calling it a "mistake". |
| "Given the values of the company, I agree with the board that it is time for me to move on," he wrote. | "Given the values of the company, I agree with the board that it is time for me to move on," he wrote. |
| Mr Easterbrook, a UK citizen who grew up in Watford, Hertfordshire, led McDonald's from March 2015 to November 2019, after previously leading its UK operations. | Mr Easterbrook, a UK citizen who grew up in Watford, Hertfordshire, led McDonald's from March 2015 to November 2019, after previously leading its UK operations. |
| He was widely credited with revitalising the firm's menus, remodelling stores and using better ingredients. The value of its shares more than doubled during his tenure in the US. | He was widely credited with revitalising the firm's menus, remodelling stores and using better ingredients. The value of its shares more than doubled during his tenure in the US. |
| Last year, he received more than $17m in total compensation. | Last year, he received more than $17m in total compensation. |
| Broader pattern? | Broader pattern? |
| The size of Mr Easterbrook's severance package had drawn earlier pushback, including from a shareholder advisory group. | The size of Mr Easterbrook's severance package had drawn earlier pushback, including from a shareholder advisory group. |
| The firm has also faced accusations that it has not taken sexual harassment seriously. | The firm has also faced accusations that it has not taken sexual harassment seriously. |
| In April, US workers filed a class-action lawsuit against McDonald's, accusing the fast food giant of fostering "systemic sexual harassment". | In April, US workers filed a class-action lawsuit against McDonald's, accusing the fast food giant of fostering "systemic sexual harassment". |
| A global coalition of labour unions filed a similar complaint with the Organization for Economic Cooperation and Development in May. | A global coalition of labour unions filed a similar complaint with the Organization for Economic Cooperation and Development in May. |
| At the time, one of the organisers, Sue Longley, general secretary of the International Union of Foodworkers, said the firm had a "culture rotten from the top". | At the time, one of the organisers, Sue Longley, general secretary of the International Union of Foodworkers, said the firm had a "culture rotten from the top". |