McDonald’s investigation into Steve Easterbrook examines cover-up claims

McDonald’s said its investigation into former boss Steve Easterbrook will examine whether he covered up alleged improprieties by other employees alongside allegations of potential misconduct within its human resources department.

The latest developments in the investigation, first reported by The Wall Street Journal, came from a tip to chairman Rick Hernandez last month about an alleged sexual relationship between Mr Easterbrook and an employee.

Executives at the fast food giant said the tip also raised questions concerning the HR department and possible misconduct by other workers. The firm did not provide details about allegations relating to the HR department. 

David Fairhurst, head of human resources at McDonald’s, left a day after Mr Easterbrook resigned. His contract was terminated for conduct inconsistent with its values, the company said. 

Mr Fairhurst could not be contacted for comment, Bloomberg reported.

McDonald’s said: “The board will follow the facts wherever they may lead. We will continue to make changes, where necessary, to support all parts of our organisation.”

It comes during legal action the US company has taken against Watford-born Mr Easterbrook, whom it claims lied about sexual relationships with several staff members.

Earlier this month, McDonald’s sued its former boss over accusations he had three additional, physical sexual relationships with members of staff in the space of a year.

He is also accused of then lying about it to company investigators, and deleting evidence so that he could leave with over $40m (£35m) in severance pay.

The purported evidence, recovered by investigators, allegedly included dozens of sexually explicit photographs and videos of the women involved, which Mr Easterbook was alleged to have sent from his work email account to his personal one.

In addition, he was alleged to have approved a grant of shares, worth hundreds of thousands of dollars, to one female employee while they were having a sexual relationship.

McDonald’s is now suing its former boss for breach of fiduciary duty and fraud in a bid to reclaim severance pay and other compensation worth $40m.

Last week lawyers for Mr Easterbrook said McDonald’s was aware of his relationships with employees when it negotiated his separation agreement.

“McDonald’s – a sophisticated entity represented by numerous internal and external experts when it entered into the separation agreement – is aware it cannot credibly allege a breach of contract claim,” they said in a filing at Delaware Chancery Court that sought to have the lawsuit thrown out.

“Instead, it improperly seeks to manufacture claims for a breach of fiduciary duty or fraud.”