McDonald’s Corp.’s lead promotion executive, senior vp-U.S. marketing R.J. Milano, resigned abruptly in October, citing “a personal decision to pursue other opportunities,” according to a company spokesperson. Also leaving is senior director-U.S. marketing Kim Poston, who directly oversees promotion execution. Both reported to executive vp-chief marketing officer Tom Ryan. Soon after, two regional marketing execs were promoted to vp-U.S. marketing posts: Dan Ryan to handle the promotion calendar, and Neil Golden to manage strategy.

The resignations likely are fallout from the embezzlement scheme that diverted $13 million in prizes out of McDonald’s Monopoly promotion prize pools (October PROMO). The FBI arrested eight in August — including ringleader Jerome Jacobson, director of security at McD’s then-agency Simon Marketing — and concluded that no McDonald’s employees were involved. McDonald’s has been criticized for lax oversight of security, because it allowed Jacobson and a rep from an independent accounting firm to oversee press runs of high-value gamepieces without a McD rep present. Milano has been McDonald’s primary liaison with Simon. A McDonald’s spokesperson said any connection between the scandal and the resignations is “complete speculation. These were personal decisions made by these two executives.”

The affair came to a head again when Los Angeles-based Simon filed suit Oct. 23 against McDonald’s in California Superior Court for the County of Los Angeles. McDonald’s filed its own suit against Simon the same day in U.S. District Civil Court in Chicago, charging the agency with civil racketeering and breach of contract (See “Law,” pg. 17). Milano and Poston resigned Oct. 31.

Ironically, the day McDonald’s suit was filed, Milano was making a keynote presentation at PROMO Expo in Chicago along with Walt Disney Co. vp-corporate alliances Grant Palin. The two discussed McDonald’s and Disney’s 10-year alliance, now at its halfway point.

Milano grew up at McD, working on the co-op business for two years at St. Louis-based Stoltz Advertising (now Glennon), St. Louis, right out of college before joining the chain. He spent seven years on McDonald’s field force, based out of Kansas City and California, and has been at Oak Brook headquarters for 11 years, rising up the marketing ranks and becoming an increasingly visible spokesperson for the company’s marketing activity.

McDonald’s Corp.’s lead promotion executive, senior vp-U.S. marketing R.J. Milano, abruptly left the fast food giant this week, citing “a personal decision to pursue other opportunities,” according to a company spokesperson. Also leaving is senior director-U.S. marketing Kim Poston, who directly oversees promotion execution. Both reported to executive vp-chief marketing officer Tom Ryan. McDonald’s won’t say when Milano and Poston will leave, or who will replace them.

The departures likely are fallout from the embezzlement scheme that diverted $13 million in prizes out of McDonald’s Monopoly promotion prize pools (October PROMO). The FBI arrested eight in August — including ringleader Jerome Jacobson, director of security at McD’s then-agency Simon Marketing — and concluded that no McDonald’s employees were involved. McDonald’s has been criticized for lax oversight of security, because it allowed Jacobson and a rep from an independent accounting firm to oversee press runs of high-value gamepieces without a McD rep present. Milano has been McDonald’s primary liaison with Simon. A McDonald’s spokesperson said any connection between the scandal and the resignations is “complete speculation. These were personal decisions made by these two executives.”

The crisis came to a head again this month when Los Angeles-based Simon filed suit Oct. 23 against McDonald’s in California Superior Court for the County of Los Angeles. McDonald’s filed its own suit against Simon the same day in U.S. District Civil Court in Chicago, charging the agency with civil racketeering and breach of contract. Simon issued a press release announcing its suit Oct. 30. Milano and Poston resigned Oct. 31.

Simon’s suit seeks to recover damages resulting from the termination of its relationship with McDonald’s, which accounted for 77 percent of Simon’s business (an estimated $335 million). The McDonald’s suit asks for $20 million in restitution and $10 million in damages.

Ironically, the day McDonald’s suit was filed, Milano was making a keynote presentation at PROMO Expo in Chicago along with Walt Disney Co. vp-corporate alliances Grant Palin. The two discussed McDonald’s and Disney’s 10-year alliance, now at its halfway point.

Milano grew up at McD, working on the co-op business for two years at St. Louis-based Stoltz Advertising (now Glennon), St. Louis, right out of college before joining the chain. He spent seven years on McDonald’s field force, based out of Kansas City and California, and has been at Oak Brook headquarters for 11 years, rising up the marketing ranks and becoming an increasingly visible spokesperson for the company’s marketing activity.