McDonald's investigates its ex-CEO for covering up executive misconduct, following a shakeup within the fast-food giant's HR department

• McDonald's is investigating if ex-CEO Steve Easterbrook covered up misconduct by other executives during his time leading the fast-food giant, as part of a wider investigation.
• The company is also investigating allegations related to the company's HR department while Easterbrook was CEO.
• Earlier in August, McDonald's filed a lawsuit claiming that Easterbrook had sexual relationships with three employees.
• McDonald's HR department has recently seen some significant executive shakeups, with two top executives leaving the company.

McDonald's is investigating if former chief executive, Steve Easterbrook, covered up misconduct by other executives during his time leading the fast-food giant.

The company confirmed that it was investigating Easterbrook's broader conduct at the company, following a Bloomberg report on Tuesday. McDonald's also said it is investigating allegations related to the company's HR department while Easterbrook was CEO.

McDonald's said in a statement that, "The Board will follow the facts wherever they may lead."

Read more: 2 top McDonald's executives exit as the fast-food giant grapples with questions about its culture

On August 10, McDonald's filed a lawsuit claiming that Easterbrook had sexual relationships with three employees that he had covered up from 2018 to 2019. Easterbrook left McDonald's in November 2019, following McDonald's investigation into a separate consensual relationship between the CEO and a McDonald's employee.

McDonald's is suing Easterbrook in an attempt to force the former CEO to return his multi-million dollar severance agreement.

Easterbrook's attorney said in a counter-filing that the company had access to evidence of Easterbrook's sexual relationships (in the form of explicit photos attached to an email Easterbrook sent himself from his corporate address) when it negotiated the then-CEO's severance agreement.

Easterbrook's attorney did not respond to Business Insider's request for comment on McDonald's investigation into the ex-CEO covering up other executives' misconduct.

"Our Board and CEO are committed to leading with integrity," McDonald's said in a statement. "We know actions speak louder than words. Since being appointed CEO in November, Chris has installed a new Chief People Officer, announced refreshed values with input from employees around the world, and has committed to making these values part of everything we do. We will continue to make changes, where necessary, to support all parts of our organization."

McDonald's HR department has seen significant shakeups

Soon after Easterbrook left McDonald's, the company announced that chief people officer David Fairhurst would also be leaving the company. McDonald's said the move was not related to Easterbrook's departure, with Fairhurst writing on LinkedIn at the time: "I have decided the time has come for me to move on to my next career challenge."

McDonald's now says that Fairhurst was terminated with cause, for conduct that was inconsistent with the company's policies and values.

The Wall Street Journal reported in January that both Easterbrook and Fairhurst contributed to a "party culture," in which top executives were known for drinking with other employees at the company. The Journal reported on Tuesday that some former McDonald's managers and employees felt they missed out on advancement opportunities because they were not involved in an after-hours social circle, made up of leaders in the HR department.

In April, Heidi B. Capozzi became McDonald's new global chief people officer, previously serving as the senior vice president of human resources for Boeing Company.

Capozzi wrote in an internal memo viewed by Business Insider the day that McDonald's lawsuit against Easterbrook was filed that the company was "partnering with a third party to conduct a cultural assessment."

In June, Melanie Steinbach was promoted to the position of the US chief people officer. News broke last week that Steinbach had left the company, with The Journal reporting that Capozzi said in an online meeting that "her separation was really in the best interest of the company."

Prior to her departure, Steinbach's corporate email's auto-reply indicated she was on "medical leave." Steinbach did not respond to Business Insider's requests for comment. McDonald's declined to comment on her departure.

In early July, McDonald's announced Wendy Lewis, its global chief diversity officer — a department that falls under the people department, or HR, at McDonald's — would be retiring from the company. An internal memo viewed by Business Insider announcing Lewis's retirement indicated she would be staying on to advise the business through September 1.

If you have a story to share about working at McDonald's, email ktaylor@businessinsider.com.