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World

AFP
November 5, 2019

McDonald´s HR chief exits after CEO shakeup

World

AFP
Tue, Nov 05, 2019

NEW YORK: One day after McDonald´s announced the dismissal of its chief executive over a relationship with an employee, the company confirmed Monday its top human resources executive also departed the fast-food giant.

David Fairhurst, who joined McDonald´s in 2005 and was named chief people officer at the restaurant chain in 2015, left the company, a McDonald´s spokeswoman said, declining to comment further.

The company announced Sunday that chief executive Steve Easterbrook had left the company following a "consensual relationship" with an employee that violated company policy.

"Easterbrook... has separated from the company following the board´s determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee," the company said in a statement.

Easterbrook´s separation agreement includes six months´ severance pay, plus stock options that are currently vested or would become vested within three years. Options that are not exercisable within that period will be forfeited, according to a US securities filing.

Easterbrook agreed to release any claims against the company and to not work for two years for a lengthy list of competitors that includes Burger King, Chick-fil-A, Starbucks and Pizza Hut.

In 2018, Easterbrook´s base pay was $1.3 million and his total compensation including bonus and stock options was $15.9 million.

A note from Morningstar praised Easterbrook´s successor, Chris Kempczinski, who joined McDonald´s in October 2015 after working in a senior strategic role at Kraft Foods and previously at PepsiCo.

Kempczinski, who became head of McDonald´s USA in 2017, helped promote digital technology and home delivery, Morningstar said.

McDonald´s shares tumbled 2.9 percent to $188.25 in afternoon trading.