McDonald’s CEO forced out over ‘consensual relationship’ with employee, Latest World News - The New Paper

McDonald’s CEO forced out over ‘consensual relationship’ with employee

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NEW YORK : McDonald's announced on Sunday that its president and CEO Steve Easterbrook was forced out after showing "poor judgment" by engaging in a "consensual relationship" with an employee.

He was replaced by Mr Chris Kempczinski, the president of McDonald's USA. Mr Kempczinski was also elected to the board of directors.

"Easterbrook... 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 said in a statement.

"The company confirms that this leadership transition is unrelated to the company's operational or financial performance."

In an e-mail to McDonald's employees, Mr Easterbrook said his relationship was "a mistake" that violated company policy.

"Given the values of the company, I agree with the board that it is time for me to move on," the e-mail said.

Mr Joe Erlinger, president of international operated markets, will take over as head of McDonald's USA, the company said.

In its most recent earnings report on October 22, McDonald's said profits dipped 1.8 per cent in the third quarter from the year-ago period to US$1.6 billion (S$2.2 billion).

Revenues at the company, which has 38,000 restaurants in more than 100 countries, edged up 1.1 percent to US$5.4 billion.

The fast-food giant notched up a healthy 5.9 per cent increase in global comparable sales, including a solid rise in the US.

But profits were pressured by increased spending on technology and research and development.- AFP