Former McDonald’s CEO Steve Easterbrook is getting 26 weeks of pay or about $670,000 as part of his severance plan.
However, Easterbrook, who was fired for violating company policy by having a consensual relationship with an employee, is forfeiting millions in unvested stock options, according to his separation agreement filed Monday with the U.S. Securities and Exchange Commission.
Easterbrook received $15.9 million in total compensation in 2018, which includes $1.34 million in salary and the rest in stock options and incentive payments. At the end of 2018, Easterbrook had unvested options worth $21.8 million.
According to the agreement, which Easterbrook signed Oct. 31, he cannot work for a fast-food competitor for two years, which is six months longer than his contract's prior noncompetition agreement.
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The agreement also spelled out the name of the competition, which include Burger King, Wendy's, Arby's, Taco Bell, Starbucks, along with convenience store chains Wawa and 7-Eleven.
Easterbrook will still be eligible for a prorated incentive payment for the 2019 fiscal year and can exercise stock options that have vested or will vest within three years.
According to the SEC filing, McDonald's new president and CEO Chris Kempczinski will make an annual base salary of $1,250,000 and "his target annual bonus opportunity was set at 170% of his annual base salary."