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Kroger CEO Rodney McMullen has resigned from his position at the company.
This change comes as Kroger, headquartered in Cincinnati, faces the fallout from its collapsed merger with rival grocery chain Albertsons. The potential $24.6 billion deal was blocked by a federal judge three months ago, siding with the Federal Trade Commission, which argued that the merger would stifle competition and result in higher prices.
Learn more about the former CEO, the reasons behind his resignation, and who has replaced him.
Who Is Rodney McMullen?
McMullen is the longtime CEO of Kroger, one of the largest grocery chains in the United States. He began his career with the company in 1978 as a part-time stock clerk and bagger at a Lexington, Kentucky store. Over the years, he held various leadership positions before becoming CEO in 2014 and chairman in 2015.
Why Did Rodney McMullen Leave Kroger?
Following a board investigation, Kroger announced in a news release that “Chairman and Chief Executive Officer Rodney McMullen has resigned from the Company following a Board investigation of his personal conduct.”
The company did not provide further details on the board’s findings in the announcement, other than stating that the behavior was unrelated to its business, “was inconsistent with Kroger’s Policy on Business Ethics,” and did not involve any Kroger associates.
Kroger stated that the board first became aware of the personal conduct issue on February 21, and immediately engaged outside counsel for an independent investigation. A search committee has been formed to find McMullen’s permanent replacement.
Rodney McMullen’s Net Worth
McMullen has an estimated net worth of at least $22.7 million, with more than 6,000 units of Kroger stock valued at over $1.6 million, according to a 2022 report from Market Realist.
The 2024 IPS Executive Excess Report revealed that McMullen’s total compensation from Kroger in 2023 was $15.7 million.
Who Is Kroger’s New CEO?
Following McMullen’s departure, Kroger has appointed Ronald Sargent as interim CEO. Sargent has extensive experience across various departments at Kroger, including stores, sales, marketing, manufacturing, and strategy. He also spent nearly 27 years at Staples, serving as CEO from 2002 to 2016. Sargent joined Kroger’s board as an independent director in 2006 and became lead director in 2017.
“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 said in a press release Monday, March 3.
