Two senior-level executives for McDonald's have filed a lawsuit claiming African Americans were systematically pushed out of senior leadership roles under the company's former chief executive Steve Easterbrook, who was fired in November 2019 for having a relationship with an employee in violation of company policy.
Vicki Guster-Hines and Domineca Neal, both of whom are African American, are seeking millions of dollars in damages and lost pay after they were demoted.
The women accuse the fast-food giant of racial discrimination, creating a hostile work environment and retaliation, among other charges.
What the lawsuit says
Filed Tuesday in the Northern District Court of Illinois, the action claims McDonald's conducted “a ruthless purge" by either firing or demoting 35 high-ranking African American executives, including Guster-Hines and Neal, during Easterbrook's tenure.
Over four years, the number of African American executives dropped from 42 to seven, claims the suit, which also names current McDonald's CEO Chris Kempczinski, who came on board with Easterbrook in 2015 as the head of the company's U.S. business.
Credit: Drew Angerer
Credit: Drew Angerer
“White officers were not purged in anything close to the same or comparable numbers,” the lawsuit alleges.
Guster-Hines and Neal said the alleged discrimination began after the arrival of Easterbrook and Kempczinski.
The suit also claims "strong-arm tactics" by the senior leadership which led to a major drop in the number of African American franchisees.
"The disproportionate loss of nearly one-third of the African American franchisees in the Easterbrook and Kempczinski era was intentional or, in the alternative, it was in reckless disregard of plainly foreseeable consequences of business decisions made by Easterbrook and Kempczinski and their minions," the complaint alleges.
McDonald’s denies claims
McDonald's has denied the allegations in a statement, saying the company decreased the number of all officer-level positions, not just those held by African Americans, during the last five years.
“At McDonald’s, our actions are rooted in our belief that a diverse, vibrant, inclusive and respectful company makes us stronger. In the U.S., in particular, almost half of our Corporate Officers are people of color — an increase of nearly 10 percent from 2013 — and all 10 of the U.S. Field Vice Presidents are people of color," the company said in a statement.
McDonald's fired Easterbrook on Nov. 3 after the executive admitted he engaged in a consensual relationship with an employee. The company’s board said in a statement that Easterbrook had “demonstrated poor judgment.”
Easterbrook, 52, who had served in the role since March 2015, acknowledged his transgression in an email to employees. “This was a mistake,” he wrote. “Given the values of the company, I agree with the board that it is time for me to move on.”
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