- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-01-09T19:21:00
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.
The SEC charged Easterbrook with misleading investors by failing to disclose to the company’s internal investigation he had sexual relationships with more than one female employee during his four-year tenure at McDonald’s, information that would have led to the company firing him with cause.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec. Select an option and click continue.
Annual Membership $499 Value offer
Full price one year membership with auto-renewal.
Membership $599
One-year only, no auto-renewal.
Norfolk Southern Corp., the railroad still cleaning up the environmental and financial damages caused when one of its trains derailed in a small Ohio town, has fired its top executive and chief legal officer after concluding they had an affair that violated company policies.
The board of British oil and gas giant BP announced its remuneration determinations after finding former CEO Bernard Looney committed “serious misconduct” in his disclosure of personal relationships with company colleagues.
The fiduciary duty of oversight that historically has applied only to directors “applies equally to officers,” including CCOs, the Delaware Court of Chancery explicitly held in its ruling regarding former McDonald’s Chief People Officer David Fairhurst.
Elon Musk, the world’s wealthiest person and the apparent right-hand man of incoming U.S. president Donald Trump, has been taken to court for a third time by the Securities and Exchange Commission for allegedly violating securities law.
Twelve more firms have been dinged with fines by the Securities and Exchange Commission for failing to properly supervise employees who used off-channel communications to conduct company business. In this latest round of enforcement actions, nine investment advisers and three broker-dealers will pay a total of $63 million.
Capital One promised very high interest rates on millions of savings accounts but the bank didn’t deliver, losing customers more than $2 billion, the Consumer Financial Protection Bureau alleged.
