After the firing of it’s CEO, McDonald’s has lost another of it’s top executive. The Chicago-based burger giant confirmed that it’s Chief People Officer David Fairhurst has left the company.
The company hasn’t commented on whether Fairhurst’s departure had any connection to the recent firing of CEO Steve Easterbrook. It announced Sunday that Easterbrook was fired because he had violated the company’s policy by having a consensual relationship with one of it’s employee.
Easterbrook will receive 26 weeks of pay but forfeit millions in unvested stock options as part of his severance agreement, McDonald’s said in a filing with the U.S. Securities and Exchange Commission.
Easterbrook’s compensation in 2018 was $15.9 million including $1.3 million in salary and the remaining in incentive payments and stock options.
Easterbrook, under his severance agreement, will be eligible for a prorated incentive payment for the 2019 fiscal year. He also has the option to exercise stock options that have vested or will vest within the next three years.
Easterbrook had unvested options worth $21.8 million at the end of 2018.
He is also forbidden from working for any of McDonalad’s competitor for 2 years.
McDonald’s board has named Chris Kempczinski as it’s new president and CEO. He most recently has served as president of McDonald’s U.S. division.
McDonald’s said that Kempczinski’s base salary will be $1.25 million. This is 58% higher than his 2018 compensation.
Analysts said that Kempczinski who had joined McDonald’s from Kraft in 2015, will likely follow the path laid out by Easterbrook, which includes redesigning U.S. stores to make them more digitally savvy and also testing voice-based technology at drive-thrus.
BTIG Managing Director Peter Saleh said in a note to investors that the company believes that these initiatives will continue largely unchanged and Mr. Kempczinski’s legacy will hinge on his ability to generate traffic growth in the United States, which neither of his two predecessors were successful in achieving.
McDonald’ shares fell bye 3% to $188.72 in early afternoon trading.