McDonalds CEO Gets Replaced

After a series of PR nightmares, McDonald’s President CEO, Don Thompson, is removed from his position at the company because the Board reportedly lost confidence in him.

Hamilton Nolan from Gawker stated that Thompson was the head of McDonalds only for a couple of years and since then, the company’s stock prices have gone way down and prices have declined heavily. There has been five CEO’s of McDonalds since 1999.

“McDonalds is notorious for its “unhealthy” presentation and over the decade, and has been bombarded with tainted meat scandals that had happened last summer in China, Hong Kong and even in Japan,” says Alison Griswold of Slate.com. Reporters secretly recorded the working conditions in at the food processing plant, Hushi Food in Shanghai. According to CNN , reporters caught workers handling food with their bare hands and picking up meat off the floor and putting it back into the processors

According to Huffington Post, this wasn’t the only mishap since Thompson was CEO. McDonalds received complaints from the National Labor Relations Board for violating labor laws. Thousands of McDonalds employees ran strikes for low wages and harsh working conditions. McDonalds has received about 291 charges since Dec. 2014. Since then, McDonald’s has been trying to take action to defend itself saying that less than half of the charges have actual merit.

McDonalds has tried to retain a good image but just cannot seem to get itself out of this hole. Former executive vice president and chief brand officer, Steve Easterbrook, will be taking Thompson’s place as new CEO of McDonalds. Easterbrook will be focused on helping turning around the McDonalds brand and eliminating skepticism and negative imagery about the company. He will also be focused on competing with other restaurant chains such as Five Guys, Chipotle, and Panera.

Steve Easterbrook, new CEO
Steve Easterbrook, new CEO

Do you think McDonalds can rebrand itself with a more positive image under Easterbrook?

References:

http://www.cnn.com/2014/07/29/world/asia/explainer-china-meat-scandal/

http://gawker.com/elegy-for-a-bad-mcdonalds-ceo-1682548827

http://www.huffingtonpost.com/2014/12/19/mcondalds-nlrb_n_6355810.html

http://www.slate.com/blogs/moneybox/2015/01/28/mcdonald_s_ceo_don_thompson_steps_down_he_couldn_t_turn_the_chain_around.html

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