Former McDonald's CEO Who Had Sexual Relations with Multiple Employees... Could Lose 47 Billion KRW Retirement Pay

McDonald's Files Lawsuit Against Former CEO
Exposed Late Due to Anonymous Tip-Off

▲Steve Easterbrook, former CEO of McDonald's [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The former CEO of McDonald's is facing the risk of losing retirement benefits worth approximately 47.5 billion KRW after it was revealed that he had inappropriate sexual relationships with multiple employees during his tenure.

On the 10th (local time), according to The Wall Street Journal (WSJ), McDonald's filed a lawsuit in a Delaware court against former CEO Steve Easterbrook regarding these matters.

According to the complaint, Easterbrook, who was ousted from the CEO position in November last year, was found to have had sexual relationships with three subordinate employees around 2018. Notably, it was investigated that he transferred company shares worth hundreds of thousands of dollars to one of them.

In November last year, McDonald's conducted an investigation into Easterbrook's conduct and subsequently dismissed him. However, the reasons for dismissal were not clearly disclosed, and retirement benefits typically provided to CEOs were paid.

Then, in July, McDonald's received an anonymous tip related to Easterbrook's conduct and launched a reinvestigation. During the investigation, the company discovered dozens of nude photos and explicit sexual photos and videos of women, including those sent by an employee from Easterbrook's company email account to a personal email account.

The company stated that this constitutes evidence that Easterbrook lied during the internal investigation before his dismissal and intentionally destroyed evidence. Furthermore, the company rules prohibit sexual relationships with subordinates, which he also violated.

During the internal investigation last year, Easterbrook explained that there was no physical relationship and that he only exchanged sexual text messages and videos.

As a result of this lawsuit, Easterbrook will lose retirement benefits and stock options worth 40 million USD (approximately 47.5 billion KRW).

McDonald's stated that if it determines that an employee is immoral and there is just cause for dismissal, it reserves the right to reclaim retirement benefits even after payment.

Stephen Hall, chairman of consulting firm Stephen Hall & Partners, evaluated, "This effort by the company to reclaim compensation provided to the CEO is very unusual."