Group wants severance pay back: McDonald's sued ex-boss after sex affair

An intimate relationship with an employee costs McDonald's boss Easterbrook the job at the end of 2019. The CEO at the time received a hefty severance payment anyway, as the relationship was not physical. New investigations are now uncovering other internal romances of the 53-year-old.

McDonald's has now also sued CEO Steve Easterbrook, who was laid off for a romance at work. In the lawsuit, the fast food chain accuses him of having three other relationships with the company and of lying about them. McDonald's now wants to reverse the multi-million dollar severance package that Easterbrook received when it was terminated in November.

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In November, the group announced that the 53-year-old had violated company guidelines as a manager and had "shown poor judgment" by entering into an amicable relationship with an employee. At the time, it was a non-physical, consensual relationship that involved texting and video calling. Easterbrook had stressed in a hearing that it was the "only intimate relationship" with an employee. The employment relationship was terminated without any specific misconduct being given as a reason for termination. As a severance payment, he received around 40 million US dollars.

Nude pictures sent by service mail

According to the new lawsuit, the company learned of the other cases through an anonymous tip. The investigation that was then initiated revealed, among other things, that a share package worth several hundred thousand dollars had been approved for one of the employees of Easterbrook during the relationship, McDonald's said. Easterbrook did not initially comment on the lawsuit.

The investigators cited dozens of nude photos and expressly sexual videos of several women as evidence. Easterbrook is said to have sent the pictures as an attachment from his work to his personal e-mail account. "If the board had known of this information, it would not have approved the contents of the termination agreement," said McDonald's.

Many publicly listed US corporations have strict rules for affairs in the workplace, including McDonald's. The British manager, who is divorced and has three children, took over the top position at the fast food giant in March 2015 from his hapless predecessor Don Thompson. Under Easterbrook, McDonald's managed to win back customers and market share, even if the industry leader continued to face tough competition in the hotly contested US home market.

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