Restaurants

McDonald's ousted CEO Steve Easterbrook steps down from Walmart board

Key Points
  • Former McDonald's CEO Steve Easterbrook resigns from the board of Walmart, effective immediately, according to a Securities and Exchange Commission filing.
  • Easterbrook's decision to resign was not due to any disagreement with Walmart, the filing says.
  • McDonald's board ousted Easterbrook on Friday after he violated company policy by having a consensual relationship with an employee.
VIDEO3:4503:45
Here's what five experts expect from McDonald's as the stock dips

Ousted McDonald's CEO Steve Easterbrook has resigned from the board of Walmart, effective immediately, according to a Securities and Exchange Commission filing on Tuesday.

Easterbrook's decision to resign was not due to any disagreement with Walmart, the retailer said in the filing. He had been on Walmart's board since 2018 and served on committees related to compensation, management development, strategic planning and finance.

His resignation from Walmart's board on Monday came as McDonald's said it was barring Easterbrook from working for one of its competitors for the next two years as part of his separation agreement. Those companies include Chick-fil-A, Yum Brands, Coca-Cola's Costa, and convenience store chains Wawa and 7-Eleven.

McDonald's board voted to oust Easterbrook on Friday, accusing him of violating company policy by having a consensual relationship with an employee. The company announced the decision Sunday evening. Chris Kempczinski, who most recently served as head of McDonald's U.S. division, is the fast-food chain's new chief executive.

Easterbrook will receive 26 weeks of severance. Last year, he earned $15.9 million in total compensation, including a $1.3 million base salary. If McDonald's hits its performance targets for 2019, Easterbrook will also be eligible for a prorated payment based on his termination date. In 2018, he earned $2.5 million from nonequity incentive plan compensation.

CNBC's Terri Cullen contributed to this report.

Next Article
Key Points
  • McDonald's confirmed Monday that its Chief People Officer David Fairhurst has departed the company.
  • The company's board fired CEO Steve Easterbrook for violating company policy by having a relationship with an employee.