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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AIITA welcomes Karnataka’s ban on obscene songs in school events
Bhatkal: The Karnataka unit of the All India Ideal Teachers Association (AIITA) has welcomed the Karnataka government’s decision to strictly ban school children from dancing to obscene songs during educational and cultural programmes in government, aided, and private schools across the state.
AIITA Karnataka State President M. R. Manvi congratulated the government for taking what he termed an important step to preserve the sanctity of education.
“Such decisions to safeguard the dignity of school children and uphold the values of education are the need of the hour. This rule should not be limited to government schools alone but must be strictly implemented in all private educational institutions as well,” he said.
He further urged the government to address other concerns within school programmes.
“The government should not only prohibit obscene dances in the name of school anniversaries, but also ensure that plays and dialogues that incite religious hatred are avoided. Schools should be centres of harmony, not platforms for spreading hatred,” he added.
According to a recent circular issued by the Department of School Education and Literacy, obscene dances are adversely affecting the mental health and moral values of students.
In this regard, schools have been advised to use songs that promote nationalism, positive thinking, the greatness of Kannada culture, and value-based traditions instead of inappropriate content during programmes.
The circular also emphasises that students should be dressed in decent attire.
AIITA also backed the department’s warning that disciplinary action would be taken against head teachers if such guidelines are violated. The association has further demanded that district Deputy Directors of Public Instruction strictly monitor the implementation of these rules.
