McDonald's Is Set to Lose $3.4 Billion in Value After the CEO Was Fired Over a Relationship With a Subordinate
McDonald’s on Friday fired its CEO, Steve Easterbrook, for violating its policy of having a relationship with an employee.
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This story originally appeared on Business Insider
McDonald’s is set to lose more than $3 billion in value on Monday morning, with the stock sinking 2.3% in premarket trading after investors balked at the shock firing of the company’s CEO.
That stock drop would wipe about $3.4 billion off the company’s value at the open, based on its market capitalization of about $147.3 billion. The fast-food chain said in a press release on Sunday that it fired CEO Steve Easterbrook from the role after he said he was in a relationship with an employee.
Since Easterbrook took the helm in 2015, McDonald’s share price has more than doubled.
Related: 5 Things You Should Know Before You Buy a McDonald’s Franchise
The company’s board on Friday voted to remove Easterbrook from the role saying that he “violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”
Easterbrook in an email to staff said that “I engaged in a recent consensual relationship with an employee. This was a mistake,” according to the Financial Times, which cited the email as saying: “Given the values of the company, I agree with the board that it is time for me to move on.”
Chris Kempczinski, who was previously serving as president, will take over from Easterbrook. The company said in a press release that “he is the best leader to set the vision and drive the plans for the company’s continued success.”
Related: Warren Buffett Says He Eats McDonald’s 3 Times a Week