The Chief Executive Officer of Fast-Food giant, McDonald, Steve Easterbrook has resigned his position on Sunday, after admitting to a consensual relationship with an employee. Both the company and Steve Easterbrook in a separate statement announced the resignation of the strategist who revived sales with all-day breakfast and led the company’s charge into delivery and online ordering, which saw him take home about $16million a year income.
According to the report by TMZ, the fast-food chain announced on Sunday, saying Steve Easterbrook who has been in charge since 2015 had “separated” from the company after a consensual relationship between him and a subordinate came to light.
In a blog post naming Chris Kempczinski as the new chief, the company noted that Easterbrook went against the company’s rules, saying:
“Kempczinski succeeds Steve Easterbrook, who has separated from the Company following the Board’s determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”
The company did not mention the name or identity of the staff Easterbrook’s was having an affair with but announced that he has resigned and a new replacement named.
Steve Easterbrook also reportedly wrote a mail explaining the whole saga, where he wrote saying:
“This (relationship) was a mistake. Given the values of the company, I agree with the board that it is time for me to move on. Beyond this, I hope you can respect my desire to maintain my privacy.”
Mr Easterbrook, 52 and single after his divorce, first worked for McDonald’s in 1993 as a manager in London before working his way up the company.
He left in 2011 to become boss of Pizza Express and then Asian food chain Wagamama, before returning to McDonald’s in 2013, eventually becoming its head in the UK and northern Europe.
He was appointed the chief executive of McDonald’s in 2015.
Mr Easterbrook is widely credited with revitalising the firm’s menus and restaurants, by remodelling stores and using better ingredients. The value of its shares more than doubled during his tenure in the US.
The company has been criticised over the amount it pays shop staff, and Mr Easterbrook faced scrutiny for his $15.9m (£12.3m) pay packet in 2018. It was 2,124 times the median employee salary of $7,473.
He will be replaced by Chris Kempczinski, most recently president of McDonald’s USA, with immediate effect, the company said.