When news surfaced that McDonald’s CEO is having an office romance, McDonald’s shares fell 2.3%.
The company announced during a press release that “he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”
This share has an estimate of $3.4 billion from its company value as of Sunday (November 3).
Before that decision, he acknowledges his relationship with an employee. The board voted on November 1 to fire the CEO.
The Wall Street Journal reported from his email “Given the values of the company, I agree with the board that it is time for me to move on”. Clearly, that decision led to Mcdonald’s losing a massive amount upon his departure.
Easterbrooke has been visiting fellow on the expertise and guidance of global CEOs at the Oxford University Centre for Corporate Reputation.
This CEO is a director of a nonprofit advocacy group impacting on women’s ethics in a workplace, the Catalyst. Furthermore, he is a sitting board member of Walmart. The Centre for Corporate Reputation and Walmart has yet to release its outlook regarding the said issue.
Before he managed the overall firm in 2015, he was the head of UK operations but started making a significant impact on the stagnant company shares and US sales. His role rose up the reputation of McDonald’s as a mere unhealthy fast-food.
Ironically, there were reports surfaced in July regarding thousands of female employees of UK Mcdonald’s being abused or harassed by their male co-workers.
The female McDonald employees were transferred to different branches instead of firing them.
Who’s the new McDonald’s CEO?
Chris Kempczinski, Mcdonald’s US President, is now the new CEO. He was one of Easterbrookes hire in 2015 and was not part of the firm. This idea of getting new ideas as part of the old CEO’s advocacy.
Because of his leadership skills, he was appointed as the CEO of the fast-food brand.
Kempczinski joined the firm in 2015. Many knows him for being a detail-oriented leader and an analytics-driven executive.
He started the move to digital enhancement and understood the fast-growing trend of technology.
Kempczinski upped the idea of digital ordering kiosks, Uber Eats and developing a more enhanced feature for drive-thru.
On the other hand, an insider revealed that he doesn’t have a good relationship with Franchisees, considered to be a crucial part of the firm.
Their insider has also revealed that McDonald’s is going to be managed by a person who started this anxiety.
Mcdonald’s is the leader in worldwide food service retailer with 38,000 branches in at least 100 countries. Independent local businessmen own 93% of this. Kempczinski may need to change his outlook on franchisees.
With new leadership guidance, the Golden Arches may soon have some fresh ideas, or would they follow the lead from Easterbrooke?
Kempczinski would have to prove and show his abilities to act upon the significant loss from the departure of the previous CEO and continue the acceleration of trending sales in the global market. What do you think?
