The Securities and Exchange Commission (SEC) found McDonald’s violated federal securities law when it failed to fully disclose material factors regarding the firing of former Chief Executive Stephen Easterbrook in 2019.
The SEC said the company “failed to disclose that it used discretion in treating Easterbrook’s termination as ‘without cause’ under the relevant compensation plan documents,” and that by doing so, awarded Easterbrook $44 million in compensation that otherwise would have been forfeited. The order also highlighted shortcomings in the company’s public statements regarding Easterbrook’s termination.
