McDonald’s CEO fired under allegations of taboo relationships in the organization


One of the world’s most famous food chain had to say that Steve Easterbrook, the CEO of McDonald’s, violated some of the crucial policies of the company. However, he is not the first Chief Executive Officer to have ousted because of violating the policies of having a consensual relationship with the staff of the company.

With the viral of the #MeToo situation, many misconducts in workplaces have been brought to scrutiny; starting from sexual harassment to discrimination to assault, which was earlier tolerated, ignored or covered up in some of the corporate corners of America.

For instance, the unexpected firing of Steve Easterbrook, CEO of McDonald’s over this weekend has brought to light how the matters concerned even with the consensual relationship between the subordinates and the managers are being looked down upon.

Although the circumstances involving the dismissal of Mr. Easterbrook remain hazy, the company on Sunday had to say that the board has come up to the decision as Easterbrook’s engagement with a subordinate violates the policies of McDonald’s. Its standard of conducting business prohibits its employees from having either a direct or an indirect relationship, which includes having a sexual relationship or even dating.

The policy states that it is not considered to be appropriate to make any of the business decisions or show favoritism based on friendships or emotions instead of taking the companies best interests into consideration.

On Monday, a regulatory filing took place in which McDonald’s had to say that Mr. Easterbrook would receive the severance pay for six months, which is about $675,000 or the half amount of his basic salary of the previous year, following the severance guidelines set by the company in the year 2018.

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However, in the coming years, he would receive a total of about $40 million as compensation, which includes the stock options as well. This estimation was made by Equilar, which is an executive consulting firm for compensation.

Also, the mere fact that a very successful CEO of a leading brand in the food industry was dismissed because of having a consensual relationship casts light on the change of attitude towards having romance in the workplace, said the experts and the employment lawyers.

Wendy Patrick, who is a business ethics lecturer said that this was a sign of the times, which shows that you are always under a microscope today in a way, which you had never experience before.


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