The U.S. Securities and Exchange Commission (SEC) on Monday said it had charged former McDonald's ( NYSE: MCD ) CEO Stephen Easterbrook with making false and misleading statements about his termination from the fast-food giant.
McDonald's ( MCD ) in Nov. 2019 fired Easterbrook for violating the company's policy over a relationship with an employee.
Easterbrook at that time had called the relationship "a mistake".
The SEC on Monday also charged MCD for shortcomings in its public disclosures related to Easterbrook's separation agreement.
"McDonald’s and Easterbrook entered into a separation agreement that concluded his termination was without cause, which allowed him to retain substantial equity compensation that otherwise would have been forfeited," the SEC said in a statement .
According to the SEC's order, Easterbrook also "knew or was reckless in not knowing" that his failure to disclose other relationships with additional MCD employees prior to his termination would influence MCD's disclosures to investors related to his departure and compensation.
Easterbrook consented to the SEC's cease-and-desist order, which imposes a five-year officer and director bar and a $400K civil penalty. The former executive did not admit or deny the SEC's findings.
McDonald's ( MCD ) has also consented to the SEC's cease-and-desist order, but will not be charged any monetary penalty as it substantially cooperated with the SEC's staff during the course of its investigation. The company also did not admit or deny the SEC's findings.
MCD stock was slightly lower at $268.67 in morning trade.
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SEC charges former McDonald's CEO Easterbrook for false statements about termination