Stephen Easterbrook: US agency fines ex-McDonald's CEO for defrauding investors

Stephen Easterbrook, who is the former chief executive officer of McDonald's, was slapped with a fine by the authorities in the United States on Monday (January 9).

The authorities accused him of defrauding investors in connection with his termination in 2019 and further barred him from serving as a public company officer for five years.

Reports mentioned that he agreed to a $400,000 fine. Though, he didn't admit or deny the claims against him under a settlement announced by the US Securities and Exchange Commission.

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"When corporate officers corrupt internal processes to manage their personal reputations or line their own pockets, they breach their fundamental duties to shareholders," said Gurbir Grewal, the SEC's head of enforcement.

"By allegedly concealing the extent of his misconduct during the company's internal investigation, Easterbrook broke that trust with -- and ultimately misled -- shareholders."

Easterbrook was appointed originally in 2015 and it is said that he helped the company's operations until his sudden November 2019 departure following a consensual romantic relationship with an employee.

The relationship apparently violated company policy and SEZ said that he exercised "poor judgment" by engaging in a relationship with a McDonald's employee.

However, it also stated that Easterbrook failed to disclose other policy violations he committed by having secret connections with other workers at the multinational fast-food chain.

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