Kroger CEO Resigns

The Kroger Co. (Cincinnati) announced that Chairman and CEO Rodney McMullen has resigned following a board investigation of his personal conduct that, while unrelated to the business, was inconsistent with the grocer’s Policy on Business Ethics. The board has appointed Lead Director Ronald Sargent to serve as Board Chair and Interim CEO, effective immediately. The board also announced that Mark Sutton will serve as Kroger’s Lead Independent Director, also effective immediately.

Here’s what the grocer is disclosing about the “why” of McMullen’s departure: “On Feb. 21, the board was made aware of certain personal conduct by McMullen and immediately retained outside independent counsel to investigate, which was overseen by a special board committee. McMullen’s conduct is not related to the company’s financial performance, operations or reporting, and it did not involve any Kroger associates.”

McMullen would have served as chairman and CEO of a combined Kroger/Albertsons, but that proposed merger fell apart late last year when Albertsons walked away from the deal after a series of judicial rulings against it. Now, in the wake of the executive’s resignation, the Kroger board has formed a search committee and engaged a nationally recognized firm to conduct a search for the grocer’s next CEO.

Sargent has agreed to serve in his role until the next CEO is named. He has served two stints at Kroger, and from 2002 to 2016, was Chairman and CEO of Staples Inc.

“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,” said Independent Lead Director Sutton.

Kroger has more than 2700 stores operating under several flags in 35 states.