McDonald's CEO axed for staff relationship, said to 'demonstrate poor judgement'

McDonald's CEO?Steve Easterbrook has been replaced for violating the company's policy by starting a relationship with an employee. While the relationship is consensual, the company said in a statement that Easterbrook "demonstrated poor judgement" in doing so.

In an email to employees, Easterbrook described his actions as?"a mistake" and said he agreed with the board that it is time for him to move on. However, he called on the staff to respect his desire to maintain his privacy, according to media outlets such as CNBC and Washington Post.

He also said his time at McDonald's has been the "most fulfilling years" of his career.?Easterbrook joined the global fast food chain in 2015, when it embarked on a major restructure to turn the business around.?To strengthen effectiveness and efficiency to drive faster, the company had classified its operations into four new segments and?streamlined its teams with fewer layers and less bureaucracy.

Meanwhile, McDonald's has named Chris Kempczinski to succeed?Easterbrook as president and CEO, effective immediately. Kempczinski, who was most recently president of McDonald's USA, has also been elected to the McDonald's board of directors. He was previously responsible for the business operations of approximately 14,000 McDonald's restaurants in the United States.?Kempczinski joined McDonald's in 2015, overseeing global strategy, business development and innovation. In that role, he served the business units and franchisees by identifying new ideas and best practices to accelerate their growth and grow the overall value of the system.

According to a press release, the leadership transition is unrelated to the company's operational or financial performance.

"Kempczinski takes the reins of this great company at a time of strong, sustained performance, and the board has every confidence that he is the best leader to set the vision and drive the plans for the company's continued success," said Enrique Hernandez Jr, chairman of McDonald's board of directors. He added that?Kempczinski?was "instrumental" in the development of the Company's strategic plan and has overseen the "most comprehensive transformation of the U.S. business in McDonald's history".

Kempczinski said he is committed to upholding the company's rich heritage of serving its customers and driving value for its shareholders and other stakeholders. "As one of the world's leading brands, McDonald's makes a difference in the lives of people every day. We have a responsibility not only to serve great food, but to make it responsibly and to enrich the communities in which we operate," he explained.

The decision by McDonald's comes as numerous companies around the world tightened regulations on workplace harrassment in response to the #MeToo movement that has gone viral over the last few years. Over in the adland,?IPG chairman and CEO Michael Roth had also?issued an internal memo titled ?A Workplace Free from Harassment? in 2017.

The memo stated that IPG has a ?zero-tolerance policy for all types of harassment?. Roth encouraged employees who have been victims of sexual harassment to make a report ?without fear of reprisal?, adding that?the company also has a zero-tolerance policy against retaliation, and will take steps to protect the victims. The memo?also included a link to the portal which allows employees to contact the IPG AlertLine, as well as the number to call for US employees.

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