Post by account_disabled on Feb 18, 2024 4:48:45 GMT -5
According to CNN , Steve Easterbrook, former CEO of McDonald's, will pay a fine of $400,000 in compensation for charges against him for making false and misleading statements to investors regarding the circumstances of his dismissal in 2019, after violating company policies and having maintained a consensual relationship with a collaborator.
As indicated by the US Securities and Exchange Commission (SEC) - charged with protecting investors and maintaining the integrity of the securities markets - when McDonald's fired Easterbrook, the agreement separation claimed that “his dismissal was without cause,” which allowed him to retain a substantial share of compensation that would otherwise have been lost.”
Former McDonald's CEO misled investors
The controversy surrounding Easterbrook dates Middle East Mobile Number List back to 2019, when the fast food chain's board of directors fired him after determining that he violated company policy by demonstrating "poor judgment due to a recent consensual relationship with a female collaborator."
But the extent of the damage did not end there. In August 2020, McDonald's filed a lawsuit alleging that Easterbrook lied to the board about his behavior, stemming from an internal investigation that revealed information about other alleged relationships the former CEO had with staff at the restaurant chain.
We fired him and then sued him when we found out he lied about his behavior."
McDonald's statement.
mcdonalds-shareholders
In response to the above, in 2021, Easterbrook had to return more than 105 million that he received from the severance package and apologized to the company: "During my tenure as CEO, at times, I failed to uphold McDonald's values and in fulfill some of my responsibilities as a leader. "I apologize to my former co-workers, the board of directors, and franchisees and suppliers for doing so."
Although McDonald's filed a lawsuit against Easterbrook that ended with the return of a portion of the compensation received by the executive, the SEC has held both the executive and the company accountable for making such a deal in the first place.
Former CEO of McDonald's sued for lying about sexual relations with employees #Mundo pic.twitter.com/Lvlv6tGpoq
— #Peru #NewsWeek (@perunewsweek) August 10, 2020
SEC issues sentence: Former McDonald's CEO will pay fine
However, the charges for making false and misleading statements will only apply to Steve Easterbrook, who must cover a civil penalty of USD 400,000, in addition to being unable to serve as a director or officer in any company that reports to the SEC.
The regulator also found that McDonald's violated the law, but the SEC will not fine it "in light of the substantial cooperation it provided to SEC staff during the course of its investigation." Easterbrook's attorneys, who accepted the order, neither admitted nor denied the SEC's findings, nor have they commented on them.
"When corporate officials corrupt internal processes to manage their personal reputations or line their own pockets, they fail in their fundamental duties to shareholders."
Gurbir Grewal, director of enforcement at the SEC.
SEC Chief Compliance Officer Gurbir Grewal has cited that by concealing his misconduct during the company's internal investigation, “Easterbrook breached the trust of shareholders and ultimately deceived them.” Thus, the former CEO of McDonald's will pay a fine for his recklessness in not disclosing additional infractions to his dismissal that would influence the company's disclosures to investors related to his departure and compensation.
As indicated by the US Securities and Exchange Commission (SEC) - charged with protecting investors and maintaining the integrity of the securities markets - when McDonald's fired Easterbrook, the agreement separation claimed that “his dismissal was without cause,” which allowed him to retain a substantial share of compensation that would otherwise have been lost.”
Former McDonald's CEO misled investors
The controversy surrounding Easterbrook dates Middle East Mobile Number List back to 2019, when the fast food chain's board of directors fired him after determining that he violated company policy by demonstrating "poor judgment due to a recent consensual relationship with a female collaborator."
But the extent of the damage did not end there. In August 2020, McDonald's filed a lawsuit alleging that Easterbrook lied to the board about his behavior, stemming from an internal investigation that revealed information about other alleged relationships the former CEO had with staff at the restaurant chain.
We fired him and then sued him when we found out he lied about his behavior."
McDonald's statement.
mcdonalds-shareholders
In response to the above, in 2021, Easterbrook had to return more than 105 million that he received from the severance package and apologized to the company: "During my tenure as CEO, at times, I failed to uphold McDonald's values and in fulfill some of my responsibilities as a leader. "I apologize to my former co-workers, the board of directors, and franchisees and suppliers for doing so."
Although McDonald's filed a lawsuit against Easterbrook that ended with the return of a portion of the compensation received by the executive, the SEC has held both the executive and the company accountable for making such a deal in the first place.
Former CEO of McDonald's sued for lying about sexual relations with employees #Mundo pic.twitter.com/Lvlv6tGpoq
— #Peru #NewsWeek (@perunewsweek) August 10, 2020
SEC issues sentence: Former McDonald's CEO will pay fine
However, the charges for making false and misleading statements will only apply to Steve Easterbrook, who must cover a civil penalty of USD 400,000, in addition to being unable to serve as a director or officer in any company that reports to the SEC.
The regulator also found that McDonald's violated the law, but the SEC will not fine it "in light of the substantial cooperation it provided to SEC staff during the course of its investigation." Easterbrook's attorneys, who accepted the order, neither admitted nor denied the SEC's findings, nor have they commented on them.
"When corporate officials corrupt internal processes to manage their personal reputations or line their own pockets, they fail in their fundamental duties to shareholders."
Gurbir Grewal, director of enforcement at the SEC.
SEC Chief Compliance Officer Gurbir Grewal has cited that by concealing his misconduct during the company's internal investigation, “Easterbrook breached the trust of shareholders and ultimately deceived them.” Thus, the former CEO of McDonald's will pay a fine for his recklessness in not disclosing additional infractions to his dismissal that would influence the company's disclosures to investors related to his departure and compensation.