McDonald's fired CEO will get at least $675,000 in severance pay, but he can't work at any of the chain's more than 36 major fast-food rivals for 2 years
- McDonald's announced Sunday that CEO Steve Easterbrook was fired over his relationship with another employee.
- The fast-food chain said in a press release that Easterbrook was terminated after he "violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee."
- On Monday, the company filed details of Easterbrook's severance package with the Securities and Exchange Commission. The agreement showed that Easterbrook would be entitled to at least $675,000 before benefits, in addition to the possibility of a prorated bonus.
- However, Easterbrook is unable to work at any McDonald's competitor for at least two years.
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McDonald's announced Sunday that CEO Steve Easterbrook had been terminated from the company after having a relationship with another employee.
On Monday, the company outlined the exact terms of Easterbrook's severance package in an SEC filing, which includes at least $675,000 before benefits, in addition to the possibility of a prorated bonus.
The agreement also includes a strict non-compete clause that says he can't work at any of McDonald's fast-food rivals for the next two years.
"You acknowledge and agree that, in performing services for McDonald's, you were placed in a position of trust with McDonald's and that, because of the nature of the services provided by you to McDonald's, Confidential Information will become engrained in you, so much so that you would inevitably or inadvertently disclose such information in the event you were to provide similar services to a competitor of McDonald's," it said.
"As such, you agree and covenant that for a period of two (2) years following your Termination Date: (a) you shall not either directly or indirectly, alone or in conjunction with any other party or entity, perform any services, work or consulting for one (1) or more Competitive Companies (as defined below) anywhere in the world; and (b) you shall not perform or provide, or assist any third party in performing or providing, Competitive Services anywhere in the world, whether directly or indirectly, as an employer, officer, director, owner, employee, partner or otherwise, of any person, entity, business, or enterprise."
McDonald's then went on to list 36 fast-food chains that would be considered its rival, adding that it is not limited to this list.
Here's the full list below:
- Arby's
- BoJangle's
- Burger King/Hungry Jacks
- Caffè Nero
- Checker's
- Chick-fil-A
- Chipotle
- Costa
- Culver's
- Denny's
- Domino's Pizza
- Dunkin' Brands
- Five Guys
- Greggs
- Hardee's
- In-N-Out Burger
- Jack-in-the-Box
- Jamba Juice
- Long John Silver's
- Quick Service Restaurant Holdings
- Panera Bread
- Papa John's
- Popeyes Chicken
- Potbelly
- Qdoba
- Quiznos
- 7-Eleven
- Sonic
- Starbucks
- Subway
- Tim Hortons
- WaWa
- Wendy's
- YUM Brands, Inc. (including, but not limited to, Taco Bell, Pizza Hut, Kentucky Fried Chicken and all of YUM Brands, Inc.'s subsidiaries).