Former McDonald's CEO Steve Easterbrook fined $400,000 for fraud


[Financial Channel/Comprehensive Report] Foreign media reported that former McDonald’s CEO Steve Easterbrook was fined US$400,000 (approximately NT$12.15 million) for allegedly defrauding investors.

According to comprehensive media reports, Easterbrook was fired in November 2019 for having an affair with a female employee in violation of McDonald's corporate policy.

At that time, Easterbrook claimed in the severance agreement that he was fired without cause, which allowed Easterbrook to retain a large amount of equity compensation.

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But later in an internal investigation, the SEC found that Easterbrook concealed from investors that he had sexual relationships with multiple female McDonald's employees during his tenure as the CEO of McDonald's, and made false and misleading statements to investors about the dismissal. .

According to the findings of the investigation, Easterbrook should not be compensated with retained shares when he leaves the company.

Therefore, the SEC on Monday (9th) accused Easterbrook of violating securities laws and allegedly defrauding investors, imposed a civil fine of $400,000 on him, and restricted Easterbrook from serving as a management or director within 5 years.

Easterbrook did not admit or deny the findings of the investigation, but has agreed to pay a $400,000 fine and return the damages McDonald's paid him earlier, ending the SEC's lawsuit related to his alleged deception of investors.

The report also noted that regulators found flaws in McDonald's public disclosures regarding Easterbrook's separation agreement with the company, though the SEC "considered that McDonald's provided substantial information to SEC staff during the investigation." Cooperation" did not impose a fine on McDonald's.

McDonald's shares closed at $268.91 on the 10th, an increase of 0.62%.

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