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Former McDonald’s CEO Stephen Easterbrook Getting Millions Leaving Spotlight on Pay Gap

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Stephen Easterbrook

Former McDonald’s CEO Stephen Easterbrook is getting an exit package of almost $42 million 

At first glance, it might appear that Stephen Easterbrook left his post as CEO of McDonald’s Corporation with peanuts. But a closer look reveals is getting an exit package of almost $42 million after his relationship with an employee was found to violate company policy. The size of his compensation puts a new focus on the widening gap between the pay at the top and the bottom of the corporate ladder.

According to an analysis by executive-compensation experts at Equilar, Easterbrook’s exit package totals $41.8 million, which includes six months of severance pay, shares he can cash out in the future and other equity. And that amount is in addition to $23.8 million in stock options that Easterbrook can exercise now.

“Wow, he is walking away with a lot of money,” says Cornell Law School professor Stewart Schwab, an expert on employment law. “And it comes out as part of the story of just, wow, [the] 1% getsa lot more money than the rest of the workers in this economy.”

It’s relatively unusual for a CEO to receive a severance package after being fired. But the board of directors at McDonald’s determined his firing to not be for cause — a threshold that varies by company. And litigation in a protracted dispute can be tricky and expensive.

Writing to employees this week, Easterbrook said: “I engaged in a recent consensual relationship with an employee, which violated McDonald’s policy. This was a mistake.” No further details were disclosed, but McDonald’s current policy prohibits employees who “have a direct or indirect reporting relationship” with one another from dating or having a sexual relationship.

McDonald’s latest disclosures show that in 2018, Easterbrook made $15.9 million. That’s 2,124 times more than a McDonald’s median employee — a part-time crew member working in Hungary. According to Glassdoor, a U.S. crew member at McDonald’s makes an average of $9 an hour.

McDonald’s did not respond to NPR’s inquiries, including those about median salary in the United States.

“A big story of the income inequality and explanation for it is that top executives, and in particular the CEO, does have the exploding pay compared to the rank and file,” Schwab says. “And this is an example of that.”

Easterbrook joined McDonald’s in 2015, and his tenure was praised by company watchers. The fast-food chain’s stock price hit historic highs under his efforts to revamp both the restaurants and the menu.

But Easterbrook also presided over the company as it faced allegations of rampant sexual harassment of female employees by male co-workers and managers. (To be clear, his departure does not involve harassment allegations.)

In May, workers in 13 U.S. cities staged protests against low pay and the company’s handling of alleged sexual harassment. In recent years, dozens of McDonald’s workers have filed sexual harassment complaints, alleging everything from lewd comments and groping to retaliation

“What we see all the time from minimum-wage workers is that once you complain, retaliation is common,” says Sharyn Tejani, director of the Time’s Up Legal Defense Fund, which works with victims who allege sexual harassment.

“That takes the form of losing shifts, losing your job, not being able to stay at your job, being disciplined. And … they don’t have any cushion,” she says. “And when you compare that to what happens to somebody like the CEO, it’s clear that there’s a structural problem here.”

Following worker complaints, McDonald’s announced in August that it would introduce an anti-harassment training program for U.S. workers. The program, which began in October, trains restaurant supervisors and crew members on how to create a safe workplace and defuse difficult situations.

Earlier in the year, McDonald’s also made an unexpected commitment to no longer lobby against minimum-wage hikes at the federal, state and local levels. In mid-2015, McDonald’s added at least $1 an hour more to the local minimum wage to employees of the restaurants owned by the corporation. The majority of McDonald’s locations are owned by franchisees.

In 2015, research by the UC Berkeley Center for Labor Research and Education found that more than half of fast-food workers rely on public assistance programs like food stamps. The research did not specifically focus on McDonald’s.

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Trump Comments on Stock Market’s latest drop – says it’s ‘peanuts’

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Trump says Tuesday’s market drop is ‘peanuts’

President Donald Trump played down the stock market’s losses on Tuesday as “peanuts” when compared with the importance of striking a good deal with China and the gains since his election.

The Dow Jones Industrial Average “was about 16,000 or 15,000 and now it’s almost at 30,000,” Trump said at the NATO summit in London. “It’s going to be at 30,000.”

“If the stock market goes up or down — I don’t watch the stock market. I watch jobs. Jobs are what I watch,” he added. Today’s move is “peanuts compared to — we have picked up record numbers so that’s OK. That’s the way I feel.”

The major stock indexes slid Tuesday after Trump said he thinks it would be a good idea to delay signing a trade deal with China after the 2020 presidential election. The Dow Jones Industrial Average fell more than 450 points at its lows on Tuesday, led lower by trade-vulnerable AppleCaterpillar and 3M.

“In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now, and we will see whether or not the deal is going to be right,” Trump told reporters before U.S. markets opened Tuesday. When asked if he had a deal deadline, he added: “I have no deadline, no. … In some ways, I think it is better to wait until after the election if you want to know the truth.”

Despite his assurances that he doesn’t watch the market’s daily moves, Trump often tweets within hours of when the U.S. equity market reaches an all-time high. He has tweeted the keyword “stock market” 107 times since his inauguration

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11 kids quotes we’re all feeling

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Ok so there’s always that time when you just wish so bad you could straight up say whats on your mind, but you know you really shouldn’t, so you don’t. Well leave it up to kids to say exactly what you’re feeling, no hesitation or regret. Check out these kids quotes that say everything you wish you could!

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THIS IS A WHOLE (FOOD) MOOD.

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Saturday savagery (submitted anonymously) #savage

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Why do kids say the darndest things? Comment with your favorite!

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How to become a better businessman in 6 steps; Priceless advice from Entrepreneurs

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Become a better businessman in 6 steps following this priceless advice from accomplished entrepreneurs.

  1. “Do something you’re very passionate about, and don’t try to chase what is the hot passion of the day.”

    Jeff Bezos accentuates having passion for what you are doing, because if you don’t love it you are much more likely to give up. It’s hard to take an idea and turn it into reality, especially by yourself or when people whom you respect tell you it can’t be done. The passion and love you give to your project will determine it’s success rate over time.

    Jeff Bezos Become a better businessman

  2. “Don’t let people who you may respect and who you believe know what they are talking about tell you that it can’t be done.”

    Pierre Omidyar continues to say that often they will tell you it can’t be done and that’s only because they don’t have the courage to try it.

    Pierre Omidyar become a better businessman

  3. “If you know exactly who you want to be, you need to spend as much time [as possible] with people that are actually that already.”


    This advice from Gary Vaynerchuk is actually priceless when it comes to success in the business world. Think as well “It’s not what you know but who you know,” and surround yourself with people you look up to. Human’s adapt to their surroundings quickly, and soon you won’t just want to be an entrepreneur, you will also know how to act like one.

    Gary Vaynerchuk

  4. “Come up with 10 new ideas every day.”


    Coming up with at least 10 new ideas every day will keep your “idea muscle” in shape, which is critical for an entrepreneur in order to keep going and stay ahead of the fast paced business world. James Altucher continues to say that once you’ve done this for about 6 months you will be an idea machine. New ideas keep passionate projects alive and ensure growth in every direction.

    Read Next: Working for yourself; Pros and Cons

    James Altucher become a better businessman

  5. Realize that, “naturally, nobody is interested in your ideas. You have to persuade them, and you have to show them that you are the one person out there that can do it.”



    Robert Greene, an American author known for his books on strategy, also says that “no one is really going to help you or give you direction.” Realizing this sooner than others will give you a head start and the ability to stop looking for recognition in others. Instead, you can focus on your passion project and make it perfect, and the world will not be able to ignore it.


    Robert Greene


    More about ‘Mastery’ by Robert Greene

  6. “Don’t think about ‘how do I get big fast.’ That will happen if you build something meaningful and important.”




    How to encourage teamwork in your organisation


    Danae Ringelmann’s advice is not something to skip. If you rush your ideas or your product you will be relying on luck more than anything to create success for you. While luck is certainly involved in alot of things, relying on it or betting on it to ‘get big fast’ doesn’t help you become a better businessman. Being proud of what you create, instilling passion into your work, and working hard will ensure success more than anything.


    danae ringelmann

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