Kroger CEO resigns amid investigation into personal conduct

In the United States, Kroger Chairman and CEO Rodney McMullen has resigned following an internal investigation into his personal conduct. This investigation was initiated after the Kroger board learned of the issues on February 21. An outside independent counsel conducted the probe, which was overseen by a special board committee. Although the investigation was determined to be unrelated to the business operations or financial performance of Kroger, it was found to be inconsistent with the company's business ethics policy, leading to McMullen's departure from the company. Rodney McMullen, 64, had a long-standing career with Kroger, starting in 1978 as a part-time stock clerk and bagger in Lexington, Kentucky. Over the years, he climbed the corporate ladder, becoming chief financial officer in 1995, chief operating officer in 2009, and ultimately being named CEO in 2014, with a subsequent elevation to chairman in the following year. His extensive tenure made him one of the most recognized figures in the grocery industry. Following McMullen's resignation, Kroger's board member Ronald Sargent was appointed as chairman and interim CEO. Sargent has been a member of Kroger's board since 2006 and has served as lead director since 2017. His background includes working in various roles across the grocery chain, such as sales, marketing, and manufacturing, and he previously held the position of chairman and CEO of Staples. Kroger's shares experienced a decline of more than 3.5% prior to the market opening following the announcement of McMullen's resignation. This occurrence comes on the heels of Kroger's failed attempt to merge with Albertsons, which would have been the largest supermarket merger in U.S. history, highlighting broader challenges the company faces in the competitive grocery market against rivals like Walmart.