The British former boss of McDonald's has been charged in the US with making false and misleading statements to investors over relationships he had with employees at the fast food giant
Gurbir Grewal, director of the SEC's enforcement division, said:"When corporate officers corrupt internal processes to manage their personal reputations or line their own pockets, they breach their fundamental duties to shareholders, who are entitled to transparency and fair dealing from executives.
"By allegedly concealing the extent of his misconduct during the company's internal investigation, Easterbrook broke that trust with - and ultimately misled - shareholders."Mr Easterbrook has not admitted or denied the SEC's findings, but has agreed to the agency's cease-and-desist order, which imposes a five-year officer and director ban as well as a $400,000 civil penalty.
The SEC also charged McDonald's with failing to disclose it exercised its own discretion in terminating Mr Easterbrook without cause.But the US federal regulator did not fine the fast-food chain, citing its cooperation throughout its investigation and its successful efforts to recover Mr Easterbrook's compensation."The SEC's order reinforces what we have previously said: McDonald's held Steve Easterbrook accountable for his misconduct," the SEC said.
"We are proud of our strong 'speak up' culture that encourages employees to report conduct by any employee, including the CEO, that falls short of our expectations."
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