LONDON (ShareCast) - (Sharecast News) - Former McDonald's chief executive Steve Easterbrook has been charged with misrepresenting his November 2019 firing, the Securities and Exchange Commission said on Monday.
Easterbrook has agreed to a $400,000 fine, without admitting or denying the claims, and will be barred from serving as an officer or director for any SEC-reporting company for five years, CNBC reported

The hamburger chain, famous for its clown mascot Ronald McDonald, fired Easterbrook in 2019 for a consensual relationship with an employee, which violated the company's fraternisation policy. However, he wasn't fired for cause, allowing him to receive a severance package.

Months later, the fast-food giant sued him, claiming that he committed fraud and lied to cover up other inappropriate relationships with employees. In December 2021, the two parties settled and McDonald's successfully clawed back Easterbrook's severance, valued at $105m.

A representative for Easterbrook was not immediately available to comment on Monday.

"When corporate officers corrupt internal processes to manage their personal reputations or line their own pockets, they breach their fundamental duties to shareholders, who are entitled to transparency and fair dealing from executives," said Gurbir Grewal, director of the SEC's division of enforcement, in a statement.

The agency also found that McDonald's violated the Exchange Act, which prohibits companies from material misrepresentations and omissions in proxy statements sent to shareholders, but did not fine the company because of its "substantial" cooperation with the agency during its investigation.

McDonald's has not admitted or denied the SEC's findings. In a statement, the company said that the SEC's actions reinforce what it has previously said about its handling of Easterbrook's misconduct.

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