In this file:
· McDonald's new CEO had a global town hall about the future of the fast-food giant
· McDonald's New CEO Kempczinski Buys $500,000 of Company's Stock
· McDonald’s wins praise for firing its CEO but reignites scrutiny over worker complaints
· Fired McDonald’s CEO could pocket $70M payout after co-worker affair
McDonald's new CEO had a global town hall about the future of the fast-food giant
o McDonald's chairman Rick Hernandez Jr. and new CEO Chris Kempczinski held a town hall on Wednesday, following the abrupt termination of former CEO Steve Easterbrook.
o Hernandez Jr. alluded to Easterbrook's firing following a relationship with a coworker in his explanation of the company's policies on workplace relationships.
o McDonald's leadership has been rallying for support following Easterbrook's ousting, with Kempczinski asking employees "to re-enlist" in making "this company an example for the world and to do the right thing each and every day."
Kate Taylor, Business Insider
Nov 6, 2019
McDonald's new CEO held a town hall on Wednesday, as the fast-food giant adjusts to an unexpected leadership shakeup.
CEO Chris Kempczinski and Rick Hernandez Jr., the chairman of McDonald's board of directors, answered questions about the future of the company in a town hall held in the company's Chicago headquarters and broadcast to workers around the world.
"The mission I'm asking you to re-enlist in is to make this company an example for the world and to do the right thing each and every day," Kempczinski told employees, according to a source with knowledge of the situation.
During the town hall, Hernandez Jr. alluded to the termination of former CEO Steve Easterbrook, who was forced to leave the company after having a consensual relationship with another McDonald's employee. The identity of the employee has not been reported.
"I think [the policy] basically it tries to keep the workplace about work, an honest and open interaction with people and a place where people can believe that decisions are made or not made for personal reasons, but for professional reasons, for the best interest of the company," Hernandez Jr. said...
McDonald's New CEO Kempczinski Buys $500,000 of Company's Stock
By Anders Melin, Bloomberg
November 6, 2019
McDonald’s Corp.’s Chris Kempczinski, who didn’t own any common stock when he was promoted to chief executive officer, bought $500,000 of shares in the restaurant company on Wednesday.
Kempczinski purchased 2,580 shares in the Chicago-based firm for $193.81 apiece, according to a regulatory filing.
Kempczinski, who was elevated to the top job on Sunday following the resignation of Stephen Easterbrook, sold his entire holding of McDonald’s common shares earlier this year, Bloomberg reported Tuesday.
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McDonald’s wins praise for firing its CEO but reignites scrutiny over worker complaints
o McDonald’s board fired CEO Steve Easterbrook for having a consensual relationship with an employee, a violation of the company’s non-fraternization policy.
o While the decision is being praised, it is also reigniting scrutiny of the company’s handling of sexual harassment allegations.
o McDonald’s workers have filed more than 50 complaints with the Equal Employment Opportunity Commission for incidents that involved sexual harassment, abuse and retaliation.
Amelia Lucas, CNBC
Nov 6, 2019
McDonald’s is garnering praise after deciding to fire its chief executive for having a relationship with an employee.
But the decision is reigniting scrutiny of the company’s handling of sexual harassment incidents that involve restaurant workers.
The Chicago-based company announced on Sunday that its board ousted CEO Steve Easterbrook for having a consensual relationship with an employee, a violation of the company’s non-fraternization policy.
“I think the board is acting decisively, showing leadership and setting an example to local franchise owners that the knives are out, and this kind of behavior is not going to be tolerated on any level,” Eric Schiffer, chief executive of Reputation Management Consultants, said.
Easterbrook’s severance package could be worth as much as $41.8 million, according to analysis by Equilar. His departure is part of broader trend, spurred on by the #MeToo Movement, that has led employers to reexamine how they handle workplace relationships that involve power imbalances.
“These days, what we find is boards are more worried about reputational risk, and they’re taking more action and acting more promptly,” said Davia Temin, the CEO of management consultancy Temin and Company.
McDonald’s Chief People Officer David Fairhurst, who headed the chain’s human resources department, departed the company on Monday.
Chris Kempczinski, who previously served as president of McDonald’s U.S. division, is the company’s new chief executive. During his tenure as the head of the company’s most important segment, McDonald’s workers have filed more than 50 complaints with the Equal Employment Opportunity Commission for incidents that involved sexual harassment, abuse and retaliation.
“It’s clear McDonald’s culture is rotten from top to bottom. McDonald’s needs to sit down with worker-survivors and put them at the center of any solution,” the Fight for $15 and a Union, a fast-food workers’ coalition, said in a statement...
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Fired McDonald’s CEO could pocket $70M payout after co-worker affair
By Tamar Lapin, New York Post
November 5, 2019
Forget the McRib… with a golden parachute like this he can afford a McSteak.
Former McDonald’s CEO Steve Easterbrook stands to pocket $70 million worth of stocks and options as part of being ousted from the company over a consensual relationship with an employee, CBS News reported Tuesday.
The eight-figure payout would come despite the fast-food giant acknowledging Sunday that the 52-year-old Easterbrook “violated company policy” and “demonstrated poor judgment” by engaging in an affair with a staffer.
On top of that, the former burger bigwig will be getting a cash severance of $700,000, or six months pay.
“No way this is what you would do if the board wanted to send the message that this type of behavior at McDonald’s is not acceptable,” veteran pay consultant Brian Foley told the outlet.
“It’s a slap on the wrist.”
The restricted stock and options could rise or fall in value over the next three years, depending on how the company fares. If it hits certain financial targets over that period, Easterbrook’s pot of gold could grow to $85 million, according to the outlet.
McDonald’s board of directors decided to label Easterbrook’s forced exit as “without cause” — meaning he was able to keep many of his stock options.
If he’d been fired for “cause” he wouldn’t have cashed in on the severance or the restricted stock and options, the outlet said.
The company’s severance policy for execs defines a for “cause” termination as when there is:
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