McDonald's Suing Former CEO Puts All Executives On Notice

Mcdonald's Corp MCD is suing its ex-CEO, Steve Easterbrook, for allegedly lying about relationships with workers.

Unacceptable Behavior: Easterbrook was believed to have engaged in a non-physical but sexual relationship with an employee through texting and video calls. An internal investigation found evidence of a physical sexual relationship with three employees.

McDonald's is now suing Easterbrook to recover his exit compensation of more than $40 million.

Engaging with subordinates as some sort of "power move" is simply unacceptable behavior, former McDonald's USA President and CEO Ed Rensi said during a Fox Business interview. But, McDonald's board didn't investigate Easterbrook's behavior as "hard as they should have" when he was fired without cause.

McDonald's board now deserves credit for doing the right thing and suing Easterbrook sends a message that puts all executives on notice: "behave yourselves," Rensi said.

Related Link: McDonald's CEO To Employees: The Party's Over

'Agreement Based On Fraud' McDonald's signed an exit package with Easterbrook that amounts to an "agreement based on fraud," criminal defense attorney Nicole Blank Becker also told Fox Business. Specifically, Easterbrook "wasn't truthful" when he spoke with the board as he said he was engaged in just one improper relationship.

"If I were McDonald's, I would say I would have never signed this agreement had they known what was going on," she said.