Kroger Chairman and CEO Rodney McMullen has resigned from the company following a Board investigation of his conduct. The company announced McMullen was stepping down in a news release on Monday.
Kroger said McMullen’s conduct was unrelated to the business but was “inconsistent” with the company’s policy on business ethics.
On Feb. 21, the board discovered certain personal conduct by McMullen and immediately began an investigation with outside independent counsel.
According to the news release, McMullen’s conduct did not involve any Kroger associates and was unrelated to the company’s financial performance, operations or reporting.
The board has appointed Lead Director Ronald “Ron” Sargent as Chairman of the Board of Directors and interim Chief Executive Officer. Mark Sutton will serve as lead independent director. The changes will immediately take effect.
“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 in a news release. “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.”
Sargent, who has 35 years of retail experience, has served as a Kroger director since 2006 and as lead director since 2017. He spent the first decade of his career with the company, working in various roles across stores, sales, marketing, manufacturing and strategy.
The board has formed a search committee and hired a nationally recognized firm to find Kroger’s next CEO.