Ousted McDonald’s chief is allowed to keep $37m in stock awards
Fired McDonald’s chief executive Stephen Easterbrook will get to keep stock awards worth over $37m (£28.7m), in addition to $675,000 severance and health insurance benefits.
The ousted boss will be allowed to keep $23.5m in stock options and may benefit from grants of restricted shares related to McDonald’s performance worth around $13.8m, according to calculations by Bloomberg.
Easterbrook will also be eligible for a bonus for his work completed in this fiscal year if the company hits its performance goals, in addition to six months of severance pay as part of his termination agreement.
“In consideration for benefits, Mr. Easterbrook has agreed to a release of claims in favor of the company,” McDonald’s announced in a regulatory filing.
Easterbrook will receive roughly $650,000 in severance pay after six months, based on his 2018 salary of $1.35m. He will also be entitled to a year and a half of health benefits.
McDonald’s announced today that the firm’s global chief people officer David Fairhurst will also leave the company, but did not provide any further details.
Chris Kempczinski, head of US operations at McDonald’s, has been announced as new chief executive of the fast food company.
Kempczinski, who joined the company in 2015 as an executive vice president, will receive an annual base salary of $1.25m, McDonald’s said today.
In a statement, Kempczinski thanked his predecessor for his contributions and said he was a “patient and helpful mentor.”
British-born Easterbrook was fired from McDonald’s on Sunday after it was revealed he was having a relationship with an employee, which, though consensual, violated company policy.
In an email to staff, Easterbrook — who is divorced — acknowledged that the relationship was a mistake. “Given the values of the company, I agree with the board that it is time for me to move on,” he said.
The Chicago-based company’s shares fell over three per cent in morning trading.
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