Company directors voted on Friday to sack CEO Steve Easterbrook, accusing the former president of exercising “poor judgement” in defying company rules. Mr Easterbrook, a divorcee from Watford, had entered into a consensual relationship with an unnamed employee. However, this ran contrary to company policy, which strictly forbids managers from becoming romantically involved with direct and indirect subordinates.
Mr Easterbrook admitted his mistake in an email to company staff, in which he endorsed the board’s decision.
He wrote: ”Given the values of the company, I agree with the board that it is time for me to move on.”
Mr Easterbrook joined the fast food giant in 1993, before leaving in 2011 to become boss of Pizza Express.
He would later move to the Asian food chain Wagamama, only to return to McDonald’s in March 2015 as CEO.
He has overseen an impressive improvement in the company’s financial performance, increasing the company’s profit margin by 12 percent in his first nine months, as well as boosting sales by 5.7 percent in 2016.
Under his stewardship, the company’s shares have almost doubled in value.
However the company’s 2019 third-quarter earnings fell short of estimates for the first time in two years, as its latest batch of promotions failed to gain traction with US consumers.
The 52-year-old executive was handsomely remunerated for his achievements, with his pay indexed to the company’s share price.
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As president of McDonald’s USA, he oversaw the most comprehensive transformation of the US business in McDonald’s history
He acknowledged his debt of gratitude to his predecessor in a company statement.
He said: “Steve brought me into McDonald’s and he was a patient and helpful mentor.”
Later in an interview with the Wall Street Journal he confirmed that he will maintain Steve Easterbrook’s focus on technology when he takes over as CEO.
He said: ”There isn’t going to be some radical, strategic shift. The plan is working.”
Despite McDonald’s prompt action to dismiss Mr Easterbrook, it was strongly criticised by Fight for $15 and a Union.
The fast-food workers’ rights group said in statement: “It’s clear McDonald’s culture is rotten from top to bottom.
“The company needs to be completely transparent about Easterbrook’s firing and any other executive departures related to these issues.”
The organisation has filed several dozen complaints on behalf of McDonald’s employees against the Chicago-based company.