Kroger CEO Rodney McMullen is resigning following a probe into his personal conduct, the grocery chain said Monday.
McMullen, who was both the chairman and CEO, is out after a company board investigation found that his personal conduct, “was inconsistent with Kroger’s Policy on Business Ethics,” the company said on Monday. His behavior was unrelated to business, Kroger added in the statement announcing his resignation.
Ron Sargent, Kroger’s lead director, will serve as the interim chairman of the board of directors and CEO, effective immediately, the company said.
What did Rodney McMullen do?
In its announcement, Kroger did not specify what McMullen did, only that his resignation stems from an investigation conducted by an independent counsel into certain behavior that the company’s board became aware of on Feb. 21. The company then immediately hired an outside independent counsel to conduct an investigation, overseen by a special board committee
“Mr. McMullen’s conduct is not related to the Company’s financial performance, operations or reporting, and it did not involve any Kroger associates,” Kroger said Monday.
Kroger’s board has formed a search committee to seek McMullen’s replacement.
“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, the interim CEO, said in a statement. “Kroger has been a special place throughout my retail career after spending summers in college working in stores, as well as my first 10 years after business school at corporate headquarters, before more recently serving as lead independent director.”
Sargent has worked as a Kroger director since 2006, and has been in his role as lead director since 2017.
Ousted CEO McMullen began his career at Kroger in 1978 as a part-time stock clerk, according to his LinkedIn profile. He was appointed CEO in 2014, and was named chairman of the board in 2015.
Kroger shares were down about 1% Monday.
The executive shakeup comes after a failed $25 billion merger with rival Albertsons. Albertsons pulled the plug on the deal in December after a judge temporarily blocked the union.
“Given the recent federal and state court decisions to block our proposed merger with Kroger, we have made the difficult decision to terminate the merger agreement,” Albertsons CEO Vivek Sankaran said in a statement at the time. “We are deeply disappointed in the courts’ decisions.”
Cincinnati, Ohio-based Kroger operates 2,750 stores in 35 states and the District of Columbia, including the chains Harris Teeter, Mariano’s, Ralphs and Smith’s.
