Fast-food giant McDonald’s is taking legal action against its former chief executive Steve Easterbrook, in an effort to recover a reported $40 million paid to him when he left the company last November.

At the time, McDonald’s said Mr Easterbrook had been fired after its board decided that “he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee”.

McDonald’s said it had agreed to terminate Mr Easterbrook's contact "without cause", based on the information available at the time, according to the firm's legal filing yesterday (10 August). This meant he received “substantial” severance benefits.

‘Additional information’

In the filing, the company said “additional information” about Mr Easterbrook’s conduct had recently come to the attention of its board through an employee, prompting further investigation.

McDonald’s alleges that Mr Easterbrook lied to the company and the board, and also accuses him of destroying information.

Its investigation found that he had been involved in intimate relationships with three other employees before being fired.

The company said that, had its board been aware of the new information, it would not have approved the financial terms agreed when Mr Easterbrook left last year.

“Accordingly, the company has brought an action against Mr Easterbrook in the Court of Chancery of the State of Delaware to recover compensation and severance benefits that would not have been retained by Mr Easterbrook had he been terminated for cause,” the filing said.

The fast-food giant prohibits "any kind of intimate relationship between employees in a direct or indirect reporting relationship".