McDonald’s avoids SEC fine for misleading statements related to fired CEO
By 
Aaron Nicodemus2023-01-09T19:21:00
The Securities and Exchange Commission (SEC) found McDonald’s violated federal securities law when it failed to fully disclose material factors regarding the firing of former Chief Executive Stephen Easterbrook in 2019.
The SEC said the company “failed to disclose that it used discretion in treating Easterbrook’s termination as ‘without cause’ under the relevant compensation plan documents,” and that by doing so, awarded Easterbrook $44 million in compensation that otherwise would have been forfeited. The order also highlighted shortcomings in the company’s public statements regarding Easterbrook’s termination.
The SEC charged Easterbrook with misleading investors by failing to disclose to the company’s internal investigation he had sexual relationships with more than one female employee during his four-year tenure at McDonald’s, information that would have led to the company firing him with cause.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
PremiumNorfolk Southern fires CEO, CLO for affair that violated company policies
Norfolk Southern Corp., the railroad still cleaning up the environmental and financial damages caused when one of its trains derailed in a small Ohio town, has fired its top executive and chief legal officer after concluding they had an affair that violated company policies.
-
News BriefEx-BP CEO facing up to $41M in losses over colleague relationship dishonesty
The board of British oil and gas giant BP announced its remuneration determinations after finding former CEO Bernard Looney committed “serious misconduct” in his disclosure of personal relationships with company colleagues.
-
PremiumExperts: Delaware court McDonald’s ruling lowers bar on officer liability
The fiduciary duty of oversight that historically has applied only to directors “applies equally to officers,” including CCOs, the Delaware Court of Chancery explicitly held in its ruling regarding former McDonald’s Chief People Officer David Fairhurst.
More from Regulatory Enforcement
-
Basic PageFTC case against insulin price gouging halted after commissioners fired by Trump
A Federal Trade Commission case against insulin price gouging has come to a screeching halt after two Democratic commissioners were fired by President Donald Trump.
-
News BriefFRC fines PwC, auditor combined $4.1M over 2019 work of Wyelands Bank
The U.K. Financial Reporting Council issued penalties against PwC and a former auditor over deficiencies on work related to the 2019 financial statements of now shuttered Wyelands Bank.
-
News BriefDOJ fines MORSE Corp $4.6M for lax cyber controls amid crack down on federal contractors
Yet another government contractor has been slapped with a fine by the Department of Justice for applying lax cybersecurity defenses on sensitive government data.