McDonald's CEO forced out over 'consensual relationship' with employee
New York: McDonald's announced Sunday that its president and CEO Steve Easterbrook was forced out after showing "poor judgment" by engaging in a "consensual relationship" with an employee. He was replaced by Chris Kempczinski, the president of McDonald's USA. Kempczinski was also elected to the board of directors.
"Easterbrook... has separated from the company following the board's determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee," the company said in a statement.
"The company confirms that this leadership transition is unrelated to the company's operational or financial performance." In an email to McDonald's employees, Easterbrook said his relationship was "a mistake" that violated company policy.
"Given the values of the company, I agree with the board that it is time for me to move on," the email said. Joe Erlinger, president of international operated markets, will take over as head of McDonald's USA, the company said.
In its most recent earnings report, on October 22, McDonald's said profits dipped 1.8 percent in the third quarter from the year-ago period to 1.6 billion.
Revenues at the company, which has 38,000 restaurants in more than 100 countries, edged up 1.1 percent to 5.4 billion. The fast-food giant notched a healthy 5.9 percent increase in global comparable sales, including a solid rise in the United States. But profits were pressured by increased spending on technology and research and development.
McDonald's has invested heavily in home delivery and mobile pay initiatives in recent years, and in 2019 has unveiled a number of acquisitions to boost its drive-through operation.
Kempczinski told The Wall Street Journal on Sunday that he plans to continue the focus on technology. "There isn't going to be some radical, strategic shift. The plan is working," he said. Easterbrook had served as chief executive since 2015. Under his leadership, McDonald's share price doubled, but he was unable to stop a decline in sales.
Like other fast food chains, McDonald's is facing headwinds as consumers seek out healthier dining options. Easterbrook's pay as CEO rose with McDonald's share price, which closed last week at 194. His compensation hit a peak in 2017 at 21.8 million, including 9.1 million in incentive-based pay, the Journal said.
Workplace relationships have cost a number of CEOs their jobs in recent years, and the topic has become even more sensitive amid the #MeToo movement.
Intel CEO Brian Krzanich and yoga apparel brand Lululemon chief Laurent Potdevin resigned from their companies in 2018 following revelations of relationships with employees.
In 2016, Priceline CEO Darren Huston stepped down for the same reason, as did BestBuy CEO Brian Dunn in 2012.
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Jhansi fire: Nurse's heroic efforts helped save over dozen babies
Lucknow/Jhansi (UP), Nov 17: Nurse Megha James was on duty when the fire broke out at the Jhansi hospital and she threw herself headlong into the rescue efforts, playing a hero's role by saving several babies.
Even when her salwar got burned, she refused to give up and was able to evacuate 14-15 babies with others' help.
"I had gone to take a syringe to give an injection to a child. When I came back, I saw that the (oxygen) concentrator had caught fire. I called the ward boy, who came with the fire extinguisher and tried to put it out. But by then, the fire had spread," James said.
Ten babies perished in a fire that broke out at the Neonatal Intensive Care Unit of the Maharani Laxmi Bai Medical College in Jhansi Friday night.
Faced with an enormous blaze, James's mind worked with a frenetic speed, to the extent she cared little about burning herself.
"My chappal caught fire and I burned my foot. Then my salwar caught fire. I removed my salwar and discarded it. At that time, my mind was virtually not working," she told PTI Videos.
James just wore another salwar and went back to the rescue operation.
"There was a lot of smoke, and once the lights went out, we could not see anything. The entire staff brought out at least 14-15 children. There were 11 beds in the ward with 23-24 babies," she said.
Had the lights not gone out they could have saved more children, James said. "It all happened very suddenly. None of us had expected it."
Assistant Nursing Superintendent Nalini Sood praised James's valour and recounted bits from how the rescue operation was carried out.
"The hospital staff broke the glasses of the NICU ward to evacuate the babies. It was then Nurse Megha's salwar caught fire. Instead of caring for her safety, she stayed there to rescue the babies and handed them over to people outside," she said.
Sood said James is currently undergoing treatment at the same medical college. She said she did not know the extent of her burns.
"The rescued babies were shifted to a ward very close to the NICU ward… When I recall the scene, I feel like crying," she said.
Dr Anshul Jain, the head of the anaesthesiology department at the medical college, explained the standard rescue operation and claimed the hospital followed the protocol to the T.
"In the triage process during an ICU evacuation, the policy is to evacuate less-affected patients first. The rationale behind this approach is that patients requiring minimal support can be relocated quickly, enabling a larger number of evacuations to be completed in a shorter time.
"In contrast, patients on ventilators or requiring high oxygen support demand more time and resources for evacuation," he said.
"This principle was successfully implemented in Jhansi, playing a significant role in saving many lives," Jain said.
A newborn rescued from the fire died due to illness on Sunday, Jhansi District Magistrate Avinash Kumar said.
