McDonald’s Stock (NYSE:MCD)
On Monday, the United States Securities and Exchange Commission (SEC) announced that it had filed charges against the former CEO of McDonald’s (NYSE:MCD), Stephen Easterbrook, accusing him of making false and misleading statements regarding his termination from the international fast-food corporation.
Easterbrook was terminated in November 2019 by McDonald’s because he had violated the firm’s rules by having a romantic involvement with a worker.
Easterbrook referred to the connection at the time as “a mistake.”
Additionally, on Monday, the SEC charged MCD with violations for failing to disclose pertinent information to the public about Easterbrook’s separation agreement.
According to a statement released by the SEC, “McDonald’s and Easterbrook entered into a separation agreement that concluded his termination was without cause.” As a result of this agreement, Easterbrook could keep substantial equity compensation that would have been lost under any other circumstances.
According to the decision issued by the SEC, Easterbrook “knew or was reckless in not knowing” that his failure to disclose other ties with further MCD employees before his firing would affect MCD’s disclosures to investors related to his departure and pay. The ruling also states that Easterbrook “knew or was irresponsible in not knowing” that MCD’s disclosures to investors connected to his departure and compensation would be influenced by his failure to disclose
Easterbrook has complied with the SEC’s cease-and-desist order, which levies a civil penalty of $400,000 in addition to a restriction on serving as an officer or director for five years. The former executive did not confirm or refute the conclusions of the SEC in any way.
McDonald’s has likewise agreed to comply with the cease-and-desist order issued by the SEC; however, it will not be subject to any monetary penalty since it extensively cooperated with the SEC’s staff throughout the inquiry. The corporation did not confirm or refute the conclusions of the SEC in any way.
During morning trading, the price of McDonald’s stock was down marginally, at $268.67.
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