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- McDonald’s announced on Sunday that it fired CEO Steve Easterbrook over his relationship with another employee.
- The fast-food chain said in a press release that Easterbrook was terminated after he “violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”
- On Monday, the company filed details of Easterbrook’s severance package with the Securities and Exchange Commission. It said Easterbrook would be entitled to at least $675,000 before benefits, in addition to the possibility of a prorated bonus.
- However, Easterbrook is unable to work at any McDonald’s competitor for at least two years.
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McDonald’s announced on Sunday that it fired CEO Steve Easterbrook over his relationship with another employee.
On Monday, the company outlined the terms of Easterbrook’s severance package in a Securities and Exchange Commission filing. It includes at least $675,000 before benefits, in addition to the possibility of a prorated bonus.
The agreement also includes a strict noncompete clause that says he can’t work at any of McDonald’s fast-food rivals for the next two years:
“You acknowledge and agree that, in performing services for McDonald’s, you were placed in a position of trust with McDonald’s and that, because of the nature of the services provided by you to McDonald’s, Confidential Information will become engrained in you, so much so that you would inevitably or inadvertently disclose such information in the event you were to provide similar services to a competitor of McDonald’s.
“As such, you agree and covenant that for a period of two (2) years following your Termination Date: (a) you shall not either directly or indirectly, alone or in conjunction with any other party or entity, perform any services, work or consulting for one (1) or more Competitive Companies (as defined below) anywhere in the world; and (b) you shall not perform or provide, or assist any third party in performing or providing, Competitive Services anywhere in the world, whether directly or indirectly, as an employer, officer, director, owner, employee, partner or otherwise, of any person, entity, business, or enterprise.”
The McDonald’s filing went on to list 36 fast-food chains that it would consider its rivals, adding that they weren’t limited to those on the list.
A McDonald’s representative declined to comment beyond the severance plan.
Here’s the full list:
- Burger King/Hungry Jack’s
- Caffè Nero
- Domino’s Pizza
- Dunkin’ Brands
- Five Guys
- In-N-Out Burger
- Jack in the Box
- Jamba Juice
- Long John Silver’s
- Quick Service Restaurant Holdings (and all its brands and subsidiaries)
- Panera Bread
- Papa John’s
- Popeyes Chicken
- Tim Hortons
- Yum Brands (including but not limited to Taco Bell, Pizza Hut, Kentucky Fried Chicken, and all its subsidiaries)
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- McDonald’s CEO Steve Easterbrook was fired over a relationship with an employee