McDonald’s Is Set to Lose $3.4 Billion in Value After the CEO Was Fired Over a Relationship With a Subordinate
McDonald’s on Friday fired its CEO, Steve Easterbrook, for violating its policy of having a relationship with an employee.
This story originally appeared on
McDonald’s is set to lose more than $3 billion in value on Monday morning, with the stock sinking 2.3% in premarket trading after investors balked at the shock firing of the company’s CEO.
That stock drop would wipe about $3.4 billion off the company’s value at the open, based on its market capitalization of about $147.3 billion. The fast-food chain said in a on Sunday that it from the role after he said he was in a relationship with an employee.
Since Easterbrook took the helm in 2015, McDonald’s share price has more than doubled.
Related: 5 Things You Should Know Before You Buy a McDonald’s Franchise
The company’s board on Friday voted to remove Easterbrook from the role saying that he “violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”
Easterbrook in an email to staff said that “I engaged in a recent consensual relationship with an employee. This was a mistake,” according to the , which cited the email as saying: “Given the values of the company, I agree with the board that it is time for me to move on.”
Chris Kempczinski, who was previously serving as president, will take over from Easterbrook. The company that “he is the best leader to set the vision and drive the plans for the company’s continued success.”
Related: Warren Buffett Says He Eats McDonald’s 3 Times a Week
McDonald’s is set to lose more than $3 billion in value on Monday morning, with the stock sinking 2.3% in premarket trading after investors balked at the shock firing of the company’s CEO.
That stock drop would wipe about $3.4 billion off the company’s value at the open, based on its market capitalization of about $147.3 billion. The fast-food chain said in a on Sunday that it from the role after he said he was in a relationship with an employee.
Since Easterbrook took the helm in 2015, McDonald’s share price has more than doubled.
Related: 5 Things You Should Know Before You Buy a McDonald’s Franchise
The company’s board on Friday voted to remove Easterbrook from the role saying that he “violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”
Easterbrook in an email to staff said that “I engaged in a recent consensual relationship with an employee. This was a mistake,” according to the , which cited the email as saying: “Given the values of the company, I agree with the board that it is time for me to move on.”
Chris Kempczinski, who was previously serving as president, will take over from Easterbrook. The company that “he is the best leader to set the vision and drive the plans for the company’s continued success.”
Related: Warren Buffett Says He Eats McDonald’s 3 Times a Week
