Published 04:11 IST, November 6th 2019
Ex McDonald's CEO Easterbrook faces two year non-competence clause
Ousted McDonald's CEO Steve Easterbrook will receive a severance pay upwards of $675,000 but won't be able to work at a fast food chain for a period of 2 years
Ousted McDonald's CEO Steve Easterbrook has reportedly received severance pay worth $675,000 but as per the contract, he will not be able to work at another fast-food chain for a period of two years. Easterbrook was fired after he had a relationship with another employee.
Noncompetence clause in the Contract
The firm had to submit a report to the U.S. Securities and Exchange Commission (SEC) and it was brought to the notice that Easterbrook would be paid at least $675,000 before bonuses. The contract also has a non-compete clause, according to which he will not be allowed to work for any other fast-food chain for two years.
The contract reads, "You acknowledge and agree that, in performing services for McDonald's, you were placed in a position of trust with McDonald's and that, because of the nature of the services provided by you to McDonald's, Confidential Information will become engrained in you, so much so that you would inevitably or inadvertently disclose such information in the event you were to provide similar services to a competitor of McDonald's. As such, you agree and covenant that for a period of two (2) years following your Termination Date: (a) you shall not either directly or indirectly, alone or in conjunction with any other party or entity, perform any services, work or consulting for one (1) or more Competitive Companies (as defined below) anywhere in the world; and (b) you shall not perform or provide, or assist any third party in performing or providing, Competitive Services anywhere in the world, whether directly or indirectly, as an employer, officer, director, owner, employee, partner or otherwise, of any person, entity, business, or enterprise."
The filed report also listed as many as 20 fast-food chains where Easterbrook will not be available to work. The list includes the names of firms such as Burger King, Domino's Pizza, Five Guys, Papa John's, Starbucks, Potbelly, Qdoba, Wendy's etc.
Easterbrook was fired after he engaged in a consensual relationship with one of the employees and violated the company policy.
Updated 04:57 IST, November 6th 2019