Kroger Chairman and CEO Rodney McMullen Exits After Internal Investigation
Kroger Chairman and CEO Rodney McMullen has resigned after an internal investigation into his personal conduct. Ronald “Ron” Sargent, lead director of Kroger’s board of directors, was appointed to serve as CEO and chairman of the board on an interim basis.
According to a statement from The Kroger Co., McMullen stepped down following a board investigation of his personal conduct. The company – which is still dealing with fallout and legal actions related to the failed merger with Albertsons Cos. – emphasized in the statement that McMullen’s alleged breach of corporate ethics was not related to the business, including its financial performance, operations, reporting or talent. Kroger’s published ethics policy, introduced and signed off on by McMullen, includes clauses on general integrity as well as behaviors related to accounting practices, compliance with the law, conflicts of interest, bribery, corporate hospitality, gifts and entertainment and confidential information, among other aspects of professional and personal conduct.
"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," said Sargent. "Kroger has been a special place throughout my retail career after spending summers in college working in stores, as well as my first ten years after business school at corporate headquarters, before more recently serving as lead independent director. My decades here have given me a full appreciation of what makes Kroger unique, and I am excited to work even more closely with this talented team. I plan to be a steady, but active hand in the execution of our strategy."
The move has been in the works behind the scenes for nearly two weeks. Kroger revealed that the board was made aware of a situation related to McMullen’s personal conduct on Feb. 21 and swiftly formed a special committee to oversee an investigation. Another committee has been tasked with the search for a new chairman and CEO.
As Sargent handles day-to-day leadership in the meantime, board member Mark Sutton will act as lead independent director. "Over the years, Ron has played an integral role in the development and approval of Kroger's strategy, which has led us to the position of strength where we are today," Sutton said of Sargent. "Kroger will continue to deliver for our customers, invest in our associates, strengthen our communities, and reward our shareholders under Ron's leadership."
To Sutton’s point, Sargent has a longstanding presence at the retailer, spending nearly two decades on Kroger’s board of directors and eight years as its lead independent director. The 35-year industry veteran began his retail career at Kroger, working in different capacities for 10 years, and later ascended to positions including chairman and CEO of Staples, Inc. He earned a bachelor of arts degree from Harvard College and an MBA from Harvard Business School and lives with his family in Cincinnati, near the Kroger headquarters.
This will be an eventful week for Kroger, which reports its fourth quarter and full year financial results on March 6. In a few weeks, PepsiCo's David Kennerley will succeed Todd Foley as SVP and CFO at Kroger.
The Kroger Family of Companies’ nearly 420,000 associates serve more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. The Cincinnati-based grocer is No. 4 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named Kroger one of its Retailers of the Century.
