McDonald's says Easterbrook eligible for six months of severance

 McDonalds says Easterbrook eligible for six months of severance

(Reuters) - McDonald's Corp said on Monday former Chief Executive Officer Steve Easterbrook was eligible for six months of severance pay, as part of his termination agreement with the company.

On Sunday, McDonald's, the world's biggest fast-food chain, said it had dismissed Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy.

"In consideration for (severance) benefits, Mr. Easterbrook has agreed to a release of claims in favor of the company," McDonald's said in regulatory filing. (http://bit.ly/2WOhfaI)

Easterbrook received total compensation of $15.88 million in 2018, according to a filing.

He would get about $675,000 (£522,972) in severance after six months, based on his 2018 base salary of $1.35 million. Easterbrook is also eligible for 18 months of health benefits, the filing showed.

McDonald's said Easterbrook's separation agreement contained a two-year post-termination non-competition clause, which is six months longer and more expansive in scope than his existing agreements.

New CEO Chris Kempczinski will have an annual base salary of $1.25 million, with a target-based bonus of 170% of his annual base salary, McDonald's said.

The Chicago-based company's shares fell over 3% on Monday.

(Reporting by Uday Sampath in Bengaluru; Editing by Bernard Orr and Shounak Dasgupta)

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Updated Date: Nov 05, 2019 00:07:20 IST