(Reuters) – McDonald’s Corp (MCD.N) said on Monday former Chief Executive Officer Steve Easterbrook was eligible for six months of severance pay, as part of his termination agreement with the company.
FILE PHOTO: Steve Easterbrook, CEO of McDonald’s Corp., attends the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S., July 10, 2019. REUTERS/Brendan McDermid/File Photo
The company also said its global Chief People Officer David Fairhurst will leave McDonald’s, but did not provide any further details.
Fairhurst has been with the company for nearly 15 years, holding key human resources positions, according to his LinkedIn profile.
On Sunday, McDonald’s, the world’s biggest fast-food chain, said it had dismissed Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy.
“In consideration for (severance) benefits, Mr. Easterbrook has agreed to a release of claims in favor of the company,” McDonald’s said in regulatory filing. (bit.ly/2WOhfaI)
Easterbrook received total compensation of $15.88 million in 2018, according to a filing.
He would get about $675,000 in severance after six months, based on his 2018 base salary of $1.35 million. Easterbrook is also eligible for 18 months of health benefits, the filing showed.
McDonald’s said Easterbrook’s separation agreement contained a two-year post-termination non-competition clause, which is six months longer and more expansive in scope than his existing agreements.
New CEO Chris Kempczinski will have an annual base salary of $1.25 million, with a target-based bonus of 170% of his annual base salary, McDonald’s said.
The Chicago-based company’s shares fell over 3% on Monday.
Reporting by Uday Sampath and Nivedita Balu in Bengaluru; Editing by Bernard Orr and Shounak Dasgupta