Business

McDonald’s CEO Steps Down After Violating Company Policy

McDonald’s has fired its CEO Steve Easterbook for having an inappropriate relationship with an employee of the company. The company said that Steve has violated the policy by having a romantic relationship with a subordinate. Fast-food giant does not forbid the mangers for having a love affair with direct or indirect subordinates. In an email, the former CEO has also acknowledged his relationship with an employee. The board of directors has voted in favor of Steve’s ouster after a thorough review meeting. The separation package of the ex CEO has not been decided yet. The officials will decide on it after the federal filing. Steve Easterbook will also be dropped from the company’s board. He was appointed as CEO of McDonald’s in 2015.

The company has denied providing any details about the employee with whom Steve was having an affair. Chris Kempczinski has been appointed as the new CEO and president of the company. He has also served as President McDonald’s USA. Steve has said that he respects the decision of the board and it is time for him to move on. The decision of the board is said to be a sign of progress on workplace values, which has been highlighted in the me-too movement. Unlike other companies, McDonald’s is trying to follow strict policies against workplace harassment.

In order to revamp the stores and expanding delivery services, the company has faced a 2 percent drop in its net income in the third quarter. The share prices of the company dropped to 7.5 percent for the quarter. However, it is still high as 9.2 percent for the year. Declining restaurant traffic has also affected the fast-food chain. Along with poor financial performance, McDonald’s has been facing dozens of workplace sexual harassment charges. A labor group called Fight for $15 has claimed that the company’s response to the harassment complaints is not adequate. They also urged that the fast-food giant needs to be transparent about the ouster of CEO Steve Easterbook and any other executive departure related to the issue.

Post Comment