Alexa
  • Directory of Taiwan

McDonald’s CEO clawback beats usual nothingburger

  282
Solar panels are seen at the UK's first ever net zero emissions McDonald's restaurant, in Market Drayton, Britain, December 9, 2021. Picture t...

Solar panels are seen at the UK's first ever net zero emissions McDonald's restaurant, in Market Drayton, Britain, December 9, 2021. Picture t...

McDonald’s (MCD.N) is finally getting its money back. The $198 billion fast-food chain settled its lawsuit against former Chief Executive Steve Easterbrook on Thursday, capping a messy ouster that started with a consensual relationship with an employee and devolved into lies and coverups about other affairs and related misdeeds. Easterbrook has agreed to return compensation now worth $105 million that included equity awards and cash. He also apologized for “failing to uphold McDonald’s values.”

Chair Enrique Hernandez and the board deserve credit for dumping Easterbrook in November 2019 when the original relationship, which breached the company's rules, first surfaced. They also risked the bad publicity of suing the former boss once further transgressions came to light. CEOs whose positions become untenable are often allowed to go quietly, taking their nest-eggs with them. The clawback of Easterbrook's hefty severance pay shows other boards how to do better for shareholders than the usual nothingburger. (By Jennifer Saba)