McDonald's claws back $105 mln from disgraced ex-CEO

McDonald’s on Thursday said it had reached a settlement with disgraced former CEO Steve Easterbrook, forcing him to repay his severance package of more than $105 million.

The agreement resolves a lawsuit in which the fast food chain claimed that Easterbrook covered up and lied about his sexual relationships with employees.

McDonald's sued Easterbrook in August of 2020, nine months after reaching a severance deal, claiming he never gave directors a complete picture of his relationships with employees.

At the time of his firing, McDonald’s said it only knew of one, non-physical consensual relationship. But an anonymous tip after his ouster led to the discovery of dozens of sexually explicit photos of women, including three employees, that Easterbrook sent to his personal email from his company account.

In his response to the lawsuit, Easterbrook had claimed that McDonald's had information about his relationships on its computer systems when it negotiated his severance package.

McDonald's itself has faced several lawsuits alleging sexual misconduct at its corporate-owned locations, and in April said it would require new training at its restaurants to fight harassment and discrimination.

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