MORE TROUBLE FOR MCDONALD'S FORMER CEO EASTBROOK

Brigitte Kimichik • August 10, 2020

MORE TROUBLE FOR MCDONALD'S FORMER CEO EASTBROOK

More trouble for former McDonald’s CEO Easterbrook.

Back in November, 2019, Easterbrook lost his job for a consensual relationship with a subordinate, the company citing “It is not appropriate to show favoritism or make business decisions based on emotions or friendships rather than on the best interests of the Company.” Many companies, in light of #MeToo, prohibit such relationships. Pursuant to regulatory filings, Easterbrook was to receive approximately half of his base salary in severance pay (approximately $675,000) and potentially many more millions in compensation, including stock options.

McDonald’s is now suing Easterbrook for allegedly lying about three other sexual relationships with employees before his firing, claiming it would not have signed a separation agreement had it known about his inappropriate conduct. McDonald’s is seeking to recover all of Easterbrook’s severance benefits and to restrict his stock options and grants.

As we note in our recent post “Finding Love at Work - Good Idea?” relationships at work are risky and can put both parties in a difficult position, especially if the male is a superior. Colleagues may interpret any promotions, raises, and higher profile work assignments (regardless of whether they are well deserved), as “preferential treatment” and negative—a conflict of interest in violation of company policy, putting not only the subordinate's job, but also the superior's job on the line. Multiple sexual relationships are more risky. The line between consensual and predatory becomes blurred and risks an expensive sexual harassment suit.

We applaud McDonald’s for taking action and sending an important message to its senior executives. As we have seen from the news, such action is rare. Many companies continue to ignore the potential financial and reputation damage in favor of the ill perceived value of the alleged violator to the company. The victim not the violator ends up losing her job.

Avoid the pitfalls of a #MeToo scandal. Take the time to hit that pause button and evaluate your work culture for toxic masculinity, sexual harassment, and racism. Educating employees and company leaders regularly and effectively regarding prevention is likely to engender a more healthy workplace of dignity and respect and ultimately improve the bottom line concerning health-related costs and profitability. Try our book, "Play Nice - Playground Rules for Respect in the Workplace," which we wrote to educate both women AND MEN— on the importance of drawing a firm line of respect and professionalism, and speaking up as a bystander. Intervention by men is especially important. Men will listen to men.

What will you do today to tackle sexual harassment and be #beupstanding to help #changetheculture for an environment without #sexualharassment and #abuse? Join us for further discussion on how to play nice at www.thesandboxseries.com.

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