McDonald's says Easterbrook eligible for half-year severance

(Reuters) – McDonald’s Corp (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.

On Sunday, McDonald’s 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, to cooperate with the company following his termination,” McDonald’s said in regulatory filing https://www.sec.gov/Archives/edgar/data/63908/000089882219000080/0000898822-19-000080-index.htm.

Easterbrook received total compensation $15.88 million in 2018, according to a regulatory filing. The value of the severance package was not immediately clear.

McDonald’s also said Easterbrook’s separation agreement contained a two-year post-termination non-competition covenant, which is six months longer and more expansive in scope than his existing agreements.

New CEO Chris Kempczinski will have a annual base salary of $1.25 million, with a target-based bonus of 170% of his annual base salary, McDonald’s said.

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