Easterbrook was CEO of McDonalds from 2015 to 2019. Under his leadership, McDonalds launched a series of digital reforms, and the companys share price increased by more than 90% during his tenure.
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The complaint said new evidence showed that the British executive had improper sexual relations with three employees in the year before he was fired, and that he had been granted hundreds of thousands of dollars in special stock awards while maintaining sexual relations with one of them. The complaint also said he was deliberately not telling the truth to investigators.
McDonalds informed investors in regulatory filings that the companys complaint alleges that Mr. Easterbrook violated his credit obligations as an officer and director of the company, and engaged in induced fraud; it is seeking compensatory damages for all payments made to Mr. Easterbrook under the resignation agreement and the companys property due to his misconduct Other costs and expenses incurred .
According to the complaint, the time stamp showed that Easterbrook approved the award of a restricted stock unit to one of the employees shortly after the first contact and a few days before the second sexual contact. McDonalds said it had taken steps to prevent Easterbrook from selling its granted shares or exercising its remaining stock options.
Chris kempczinski, who replaced eastbrook as CEO, told franchisees and employees in another letter that McDonalds will not tolerate any employees behavior that is inconsistent with our values..
Last year, I lost a job that paid hundreds of millions of yuan a year
McDonalds has ruled that the companys CEO must not have a romantic relationship with any other employee, according to the companys rules. In an email to McDonalds employees, Easterbrook expressed regret: I recently had a two-way relationship with an employee, which violated McDonalds regulations. This is a mistake. Given the companys values, I agree with the board that its time for me to leave. In addition, I hope you will respect my desire to keep my privacy.
He also said that being CEO was the most significant years of my career..
Easterbrooks compensation reached $21.8 million in 2017, of which $9.1 million was incentive compensation. His salary in 2018 was $15.9 million (about 110 million yuan).
In 2017, McDonalds officially operated independently in China and renamed it golden arch, which attracted wide attention of netizens. This is a big decision made by Easterbrook.
At that time, CITIC and Carlyle Investment Group acquired McDonalds China at a price of US $2.08 billion. The newly established McDonalds China company operates and manages McDonalds business in the mainland and Hong Kong.
Photo source: by reporter Zhao Yun
According to media reports, Zhang Yichen, chairman and chief executive officer of CITIC Capital, revealed at the Asian financial forum that the United States did not allow CITIC Capital to continue to use its original name after it bought McDonalds, so he called it golden arch gate in anger.
I originally wanted to use a different name. McDonalds didnt let me use it. I was so angry that I called it golden arch. Finally, the number of online reading about this news was 9 billion times. On average, every Chinese saw six articles about changing names. Can this marketing force be found in other parts of the world? This shows that the potential of consumption is huge. Zhang Yichen said frankly.
McDonalds has just hit its worst performance since 2005
At the end of July, McDonalds released its latest results. In the second quarter, its revenue was $3761.5 billion, a year-on-year decrease of 30%. Its net profit was $483.8 million, a year-on-year decrease of 68%. The decline rate exceeded the market expectation and was further expanded compared with the first quarter, making it the worst performance since 2005.
In response, McDonalds said that because of the blockade measures brought by the coronavirus, its sales of French fries and cheeseburgers fell by 23.9% year-on-year in the second quarter, with the same store sales in the United States falling 8.7%. The same store sales in international markets, including France and the UK, fell two-thirds in April from a year earlier, and narrowed to 18.4% in June. In the international development licensing markets, including China and Brazil, the same store sales fell by 32.3% year-on-year in April, and narrowed to 20% in May. The situation did not further improve in June, with a decrease rate of 20.3%.
McDonalds said that almost all of its restaurants have resumed business, but there are still time and regional imbalances. For example, the business recovery growth was obvious in April and may, but the business recovery in June was relatively weak.
In fact, since 2014, the number of McDonalds stores in the United States has been decreasing year by year. McDonalds currently operates 13835 stores in the United States, with a decrease of more than 500 compared with 2014. Meanwhile, McDonalds expects to open about 950 new restaurants around the world this year.