McDonald’s shares fall 3% on CEO ousting

CHICAGO, Illinois – Shares in McDonald’s Corp fell more than 3% on Monday despite rising stock prices across the board.

The loss of value in the company was attributed to the weekend’s ousting of former Chief Executive Officer Steve Easterbrook, which was announced on Sunday.

Easterbrook leaves with 6 months severance pay, but the cost to the company is far greater due to the loss of capitalisation the news has caused.

Additionally, the hamburger giant’s global Chief People Officer David Fairhurst is to depart McDonald’s, the company said without elaborating.

Fairhurst is a 15-year veteran with the company.

Easterbrook was fired due to having a consensual relationship with an employee, in violation of company policy.

“In consideration for benefits, Mr. Easterbrook has agreed to a release of claims in favor of the company,” McDonald’s said in regulatory filing on Monday.

Easterbrook earned $15.88 million last year, the filing said. As the salary component of his remuneration was $1.35 million, it is understood his severance pay would amount to $675,000.

He is also eligible for 18 months of health benefits, the filing said.

The newly CEO, Easterbrook’s replacement, Chris Kempczinski will have an annual base salary of $1.25 million, with a target-based bonus of 170% of his annual base salary, McDonald’s said in it’s filing.

Published at Tue, 05 Nov 2019 05:20:49 +0000

Source: McDonald’s shares fall 3% on CEO ousting.

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