McDonald's Corp. has terminated chief executive officer Steve Easterbrook after the board of directors found that he engaged in a consensual relationship with a fellow employee.
Easterbrook, who was terminated on Friday by a vote from the management of the Chicago-based company, also resigned from the board of the fast-food chain.
In a news release, the company said that Easterbrook, who took over as CEO in March 2015, "violated company policy and showed poor judgment with a recent consensual relationship with an employee."
McDonald's (NYSE: MCD) prevents executives from having romantic workplace affairs.
The worker was not identified by the organization. The Wall Street Journal announced that Easterbrook is divorced.
"It was a mistake," said the 52-year-old Easterbrook in The Wall Street Journal's letter. "I agree with the board that it's time for me to move on, given the company's principles."
A description of the separation plan from Easterbrook will be released later this week in a regulatory statement.
The board elected 51-year-old Chris Kempczinski, chairman and chief executive officer, and a board member, as Easterbrook's replacement.
In 2015, Kempczinski became part of McDonald's for the first time, managing global strategy, business development, and creativity.
He was responsible for the business operations of approximately 14,000 McDonald's restaurants in the United States in his most recent role.
McDonald's has chosen Joe Erlinger to succeed Kempczinski as McDonald's United States chief.
Erlinger is chairman of International Operated Markets, who will answer to Kempczinski. Erlinger joined McDonald's in 2002.
As far as Kempczinski is concerned, the board said he "has the best mix of skills and expertise to guide us forward in managing our U.S. operations."
"There will be no radical, strategic shift. The plan works," Kempczinski disclosed to the Wall Street Journal.
Some of Easterbrook's changes had been pushed back by U.S. franchisees, including investments in digital-order kiosks and new menu items. The franchisees formed an independent group last year to contest some of the reforms.
"Chris played a key role in creating the company's strategic plan that allowed global growth and innovation and guided the most thorough restructuring of the U.S. market in McDonald's history," said Enrique Hernandez Jr., Chairman of McDonald's Board of Directors.
During the time of Easterbrook's management, McDonald's shares rose, and the business remained at the forefront of U.S. fast-food sales, even as the market is facing challenges. Easterbrook, who is also on Walmart's board, was paid $15.9 million last year.
Details of Easterbrook's severance fee will be made public Tuesday in a federal filing, McDonald's said.
