McDonald's CEO will get at least R10 million in severance pay after being fired for having a relationship with an employee
- McDonald's former CEO Steve Easterbrook is set to receive at least $675,000 (R9.9 million) in severance pay after being fired for having a consensual relationship with an employee.
- Easterbrook will continue to be eligible for benefits, bringing his total severance plan package to $702,255 (R10 million). He could earn a prorated bonus in the future.
- Easterbrook earned $15.9 million in his role as McDonald's CEO in 2018.
- A representative for McDonald's did not immediately return Business Insider's request for comment on the severance plan.
- For more stories go to www.BusinessInsider.co.za.
McDonald's former CEO is set to get more than half a million dollars in severance after being fired for having a consensual relationship with an employee.
According to company documents filed on Monday, Steve Easterbrook is entitled to 26 weeks of severance pay. As the CEO of McDonald's, Easterbrook was earning $1.35 million (R19 million) a year as his base salary; 26 weeks of severance pay based on this amounts to $675,000 (R9.9 million).
Easterbrook is additionally eligible for medical and other transitional assistance benefits, according to McDonald's annual letter to shareholders, bringing his total severance plan package, as of the end of 2018, to $702,255 (R10 million).
As McDonald's CEO, the bulk of Easterbrook's compensation came in the form of cash incentives and stock tied to the company's performance. In 2018, Easterbrook's total compensation was $15.9 million, primarily through stock and option awards and his incentive plan compensation.
Easterbrook is still eligible to receive more money from his "short term incentive plan," which can be up to 180% of his base salary. In 2018, Easterbrook earned $2.5 million in his short term incentive plan payout. In March 2020, Easterbrook will be eligible to receive a prorated payout based on McDonald's performance - meaning he could earn hundreds of thousands more dollars.
A representative for McDonald's did not immediately return Business Insider's request for comment on the severance plan.
As part of the severance plan, Easterbrook cannot work for any of McDonald's competitors in the next two years or disparage the company in any way (including, specifically, on Twitter and Facebook). As McDonald's new CEO, Chris Kempczinski's base salary will be $1.25 million, with a target annual bonus set at 170% of his annual base salary.
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