Former McDonald’s Corp. Chief Executive Officer Stephen Easterbrook agreed to pay $400,000 over allegations from US regulators that he failed to disclose improper relationships with employees at the company.
(Bloomberg) — Former McDonald’s Corp. Chief Executive Officer Stephen Easterbrook agreed to pay $400,000 over allegations from US regulators that he failed to disclose improper relationships with employees at the company.
The Securities and Exchange Commission said on Monday that Easterbrook didn’t fully disclose violations of company policy leading up to his termination in 2019. The terms of his departure let him maintain “substantial equity compensation,” the agency said in a statement. Lawyers for Easterbrook, who didn’t admit or deny the SEC’s allegations as part of the settlement, didn’t immediately respond to an emailed request for comment.
The penalty is the latest twist in a yearslong saga over Easterbrook’s tenure. In late 2021, he agreed to return $105 million in cash and equity awards to settle a lawsuit by the fast-food chain. The amount is what Easterbrook would have forfeited had he been forthcoming about his actions and been fired for cause, the Chicago-based company said at the time.
The SEC said that it wasn’t imposing a financial penalty on McDonald’s “in light of the substantial cooperation” and remedial measures that the fast-food giant has taken. In addition to the his financial penalty, as part of the settlement, Easterbrook agreed to a five-year ban from serving as officer or director.
A lawyer for McDonald’s in the matter also didn’t respond to a request for comment.
“By allegedly concealing the extent of his misconduct during the company’s internal investigation, Easterbrook broke that trust with – and ultimately misled – shareholders,” Gurbir Grewal, the SEC enforcement head, said in a statement.
–With assistance from Stephanie Stoughton.
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