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McDonald’sChiefForcedOutafterRelationshipwithEmployee
TheAmericanfastfoodbusinessMcDonald'sisknownaroundtheworldandwasinthenewslastweekend.
McDonald'sCorporationannouncedthatitschiefexecutiveofficer, CEO, hasbeenforcedoutofthecompanyforhavingaconsensualrelationshipwithanemployee.
Therelationshipwasaviolationofcompanypolicy, McDonald'ssaid. AnditaccusedCEOSteveEasterbrook, whoalsoservedasthecompany'spresident, ofshowingbadjudgment.
McDonald'sbarssupervisorsfromhavingromanticrelationshipswithemployeeswhodirectlyorindirectlyreporttothem.
Inanemailtoemployees, Easterbrookadmittedhehadarelationshipwithanemployeeandthatitwasamistake.
"Giventhevaluesofthecompany, Iagree...thatitistimeformetomoveon," Easterbrooksaidintheemail.
McDonald'sboardofdirectorsvotedonEasterbrook'semploymentFridayafteraninvestigationintohisrelationship. Hewillalsobeleavingthecompany'sboardofdirectors. EasterbrookwasappointedasCEOin 2015.
McDonald'swouldnotprovidedetailsabouttheemployeewithwhomEasterbrookhadarelationship. AlawyerforEasterbrookwouldnotanswerquestions.
TheboardofdirectorsnamedChrisKempczinskiasitsnewCEOandpresident. HerecentlyservedaspresidentofMcDonald'sUSA.
Twoweeksago, McDonald'sreporteda 2 percentdropinprofitsforthethreemonthreportingperiodendingonSeptember 30, 2019. Duringthatperiod, thecompanysaiditspentalotofmoneyremodelingitsstoresandexpandingdeliveryservice. McDonald'salsohasreportedthatfewerpeoplearegoingtoitsrestaurants.
TheleadershipchangeisunrelatedtoMcDonald'soperationalorfinancialperformance, thecompanysaidinapressrelease.
McDonald'sdecisiontoremoveitsCEOmayshowtherehasbeenprogressonworkplaceissuesasaresultofthe #MeToomovement, saidCarlTobias. HeteacheslawattheUniversityofRichmond.
"Othercompaniesdon'talwaysactonthatkindofinformation...andsoitseemsliketheyaretryingtoenforcea (strong) policyinthissituation," Tobiassaid.
Lastyear, BrianKrzanichlefthisjobasCEOofIntelCorporationafterinvestigatorsfoundhehadaconsensualrelationshipwithanemployeethatviolatedcompanypolicy.
InDecember, CBSCorporationremoveditsCEO, LesMoonves, afterseveralwomenaccusedhimofsexualharassment. TheCBSboardofdirectorsdeniedhim $120 millionpromisedunderhiscontractwiththecompany.
Amongotherproblems, McDonald'shasfacedworkplaceharassmentcharges. InMay, thecompanysaiditwasexpandinganti-harassmenttrainingandofferingatelephonehotlineforworkerstoreportproblems. McDonald'smadethechangesafteralaborgroupannouncedmorethan 20 sexualharassmentcasesagainstthecompany.
Fightfor $15 isthenameofthegroupthatbroughtthesexualharassmentcharges. ItsaidMcDonald'sanswerstothechargeswerenotgoodenough.
"Thecompanyneedstobecompletely (open) aboutEasterbrook," thegroupsaid.
KempczinskijoinedMcDonald'sin 2015. Hewasresponsiblefornearly 14,000 McDonald'sintheUnitedStates.
I'mSusanShand.