McDonald's fired CEO Easterbrook can't work for rival for at least two years
In a regulatory filing, McDonald's disclosed details of its separation agreement with Stephen Easterbrook, who was separated from his officer and director positions with the company, as previously reported. The agreement provides that he will be eligible for the severance benefits contemplated by the company's benefit plans upon a termination of employment. "In consideration for such benefits, Easterbrook has agreed to a release of claims in favor of the company, to cooperate with the company following his termination and to various restrictive covenants, including nonsolicitation of employees and non-interference with business partners for two years post-termination and perpetual confidentiality and nondisparagement covenants. In addition, the separation agreement contains a two-year post-termination noncompetition covenant, which is six months longer and more expansive in scope than Mr. Easterbrook's existing noncompetition covenants," the filing stated. "Competitive Companies," as defined by the company's agreement, shall mean any company in the restaurant industry - whether informal eating-out or ready-to-eat - that competes with the business of McDonald's, including examples such as Arby's, BoJangle's, Burger King/Hungry Jacks, Caffe Nero, Checker's, Chick-fil-A, Chipotle, Costa, Culver's, Denny's, Domino's Pizza, Dunkin' Brands, Five Guys, Greggs, Hardee's, In-N-Out Burger, Jack-in-the-Box, Jamba Juice, Long John Silver's Quick Service Restaurant Holdings, Panera Bread, Papa John's, Popeye's Chicken, Potbelly, Q-doba, Quiznos, Seven-Eleven, Sonic, Starbucks, Subway, Tim Horton's, WaWa, Wendy's, YUM Brands, the filing noted.