Rodney McMullen, CEO of Kroger, resigned immediately after an internal investigation found his personal conduct violated the company’s ethics policies. The board stated that his actions were unrelated to financial performance, operations, or company employees.
Here’s what we know about his resignation.
Kroger CEO Rodney McMullen’s resignation explained
Kroger Chairman and CEO Rodney McMullen has resigned immediately after an internal investigation found his personal conduct was “inconsistent” with the company’s ethics policies.
In a press release, the company stated that the conduct was unrelated to financial performance, operations, or reporting and did not involve company employees. The board learned about the issue on February 21 and hired an independent counsel to investigate. A special board committee oversaw the investigation.
Ronald Sargent, a Kroger board member since 2006 and former Staples CEO, has been named interim CEO. “As interim CEO, I am committed to working alongside our proven and experienced management team and dedicated associates to ensure Kroger continues providing exceptional value for our customers,” Sargent said in a press release. The board has formed a search committee and hired an external firm to find McMullen’s successor.
McMullen joined Kroger in 1978 as a part-time stock clerk and became CEO in 2014. The company abandoned its $25 billion merger with Albertsons last year due to regulatory opposition. His resignation followed the failed deal. Albertsons later sued Kroger, alleging a breach of contract for not taking “any and all actions” to secure regulatory approval. (via CNN)
After the merger collapsed, some United Food and Commercial Workers local unions called for McMullen’s removal, especially after Kroger announced a $7.5 billion stock buyback plan. Kroger confirmed he will not receive a 2024 bonus, though he earned $15.71 million in total compensation for 2023. The company’s stock fell about 1.4% after the announcement. (via Investing)
Kroger is scheduled to release its quarterly earnings report later this week.
