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Internal McDonald's Investigation Deepens After CEO Firing: Report

Mcdonald's Corp's (NYSE: MCD) investigation into ex-CEO Steve Easterbrook's conduct has taken a turn amid fresh allegations of a cover-up,

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Mcdonald's Corp's (NYSE:MCD) investigation into ex-CEO Steve Easterbrook's conduct has taken a turn amid fresh allegations of a cover-up, The Wall Street Journal reported Tuesday. 

What Happened: McDonald's is suing its former CEO, alleging that Easterbrook wasn't fully truthful with the board when the two sides negotiated an exit package.

In the latest developments, former McDonald's managers told WSJ they believe human resource leaders ignored complaints about the conduct of other executives and co-workers.

Some of the sources said they feared retaliation for informing McDonald's human resources of potential misconduct.

Why It's Important: Easterbrook personally appointed David Fairhust as McDonald's global chief people officer within months of his appointment as CEO, according to WSJ.

Fairhust was reportedly quick to introduce changes, including allowing less employee feedback about concerns.

Fairhust himself is also alleged to have made inappropriate physical contact with employees during a holiday party where workers were excessively drinking, sources told WSJ.

Former managers and employees also told the newspaper hat those who decided not to partake in after-hours social circles were overlooked for advancement opportunities in human resources and other departments.

What's Next: McDonald's fired Fairhust with cause after Easterbrook's dismissal. His replacement, Heidi Capozzi, is reviewing policies that Easterbrook and Fairhust put into place, including how McDonald's evaluates employee concerns.

"Our board and CEO are committed to leading with integrity," McDonald's told WSJ in a statement. "We will continue to make changes, where necessary, to support all parts of our organization."

MCD Price Action: McDonald's shares were trading 0.24% higher at $213.16 at last check Wednesday. 

Related Links:

Institutional Investor Says McDonald's Lawsuit Against Ex-CEO Shows Failure By Board

McDonald's Suing Former CEO Puts All Executives On Notice

Photo courtesy of McDonald's.