NEW YORK (AP) – The McDonald’s CEO was expelled from the company after violating company policies by establishing a friendly relationship with an employee, the company said Sunday.
The judgment made by the former CEO was really not up to the mark. It was necessary that he should have thought a bit more regarding the judgment and the decisions he made.
In an email to employees, Easterbrook confirmed that he had a relationship with an employee and said it was a mistake.
It was time to move forward and work towards the betterment of the company. And he was right.
The McDonald’s board of directors voted on Friday after a thorough review to leave Easterbrook. According to a company spokesman, details of the Easterbrook separation package will be released in a federal file Monday. He will also leave the company’s board of directors. Easterbrook has been CEO since 2015.
McDonald’s did not disclose the details of the Easterbrook employee, and an Easterbrook attorney declined to answer questions.
The Board of Directors appointed Chris Kempczinski, who was recently President of McDonald’s USA, as the new President and CEO.
Was the loss a factor?
Two weeks ago, McDonald’s announced a 2% drop in net profit for the third quarter, as a lot of money was spent restructuring the business and expanding delivery services. Since then, the company’s share price has dropped 7.5%, although it still topped 9.2% on the year. The Hamburg chain also suffered a decrease in restaurant traffic. The change in management is not related to the company’s operating or financial performance, according to a company statement.
McDonald’s decision to act could be a sign of progress in labor problems that arose in the #MeToo era, said Carl Tobias, a law professor at the University of Richmond.
Not every company fires the CEO. Thus, it can be safely assumed that they are too strict with their policies.
Among other things, McDonald’s was accused of workplace harassment in its restaurants. In May, McDonald’s announced plans to improve training and offer a new hotline for workers after a task force filed dozens of sexual harassment complaints against the company.
The group that filed the lawsuit fought for $ 15 and said McDonald’s response to his sexual harassment complaints was inadequate and that “the company should be completely transparent about the resignation of Easterbrook and all others involved in the management.”
Kempczinski joined McDonald’s in 2015. He was the person behind the establishment of more than 14,000 restaurants in the United States alone. Enrique Hernández, chairman of the McDonald’s Board of Directors, said in a press release that he had played a critical role in developing McDonald’s strategic plan and overseeing the broader transformation of American business in the country. McDonald’s history.