McDonald’s ex-CEO to pay SEC fine over misrepresenting exit

Bloomberg

Former McDonald’s Corp Chief Executive Officer (CEO) 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 (SEC) said 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 years-long 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 his financial penalty, as part of the settlement, Easterbrook agreed to a five-year ban from serving as officer or director.
Easterbrooks’s messy exit more than three years ago remains a legal headache for McDonald’s. Three pension funds which hold shares of the fast-food company have sued, saying in court last month that it didn’t get nearly enough from Easterbrook when he agreed to return $105 million to settle claims that he was improperly involved with subordinates.