Kroger Chairman and CEO Rodney McMullen has resigned after an internal investigation into his personal conduct, reports the AP. Kroger, the nation's largest grocery chain, said Monday that the investigation into McMullen's unspecified behavior was unrelated to the business, but "was inconsistent with Kroger's policy on business ethics," per the Cincinnati Enquirer. Board member Ronald Sargent will serve as chairman and interim CEO, effective immediately.
McMullen, 64, began his career with Kroger in 1978 as a part-time stock clerk and bagger at a store in Lexington, Kentucky. He worked his way up through the company, becoming chief financial officer in 1995 and chief operating officer in 2009. McMullen was named Kroger's CEO in 2014 and became the company's chairman the following year. Kroger paid him $15.7 million in 2023, per the Enquirer. Kroger said its board was made aware of the situation on Feb. 21 and immediately hired an outside independent counsel to conduct an investigation, overseen by a special board committee. The company said that McMullen's conduct is not related to its financial performance, operations, or reporting, and did not involve any Kroger associates.
Sargent has been on Kroger's board since 2006 and has served as the lead director of the company since 2017. He's worked in several roles at the grocery chain across stores, sales, marketing, manufacturing, and strategy. Sargent is also the former chairman and CEO of Staples. Kroger will conduct a search for its next CEO, with Sargent agreeing to remain as interim CEO until someone is appointed to the role permanently. Shares of Kroger, based in Cincinnati, fell about 1.3% before the opening bell. (More Kroger stories.)
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