CINCINNATI, March 3, 2024 — Rodney McMullen, the long-serving CEO and Chairman of Kroger Co., has resigned following an internal investigation that concluded his personal conduct was inconsistent with the company’s business ethics policy. The board of directors appointed Ronald Sargent, former CEO of Staples and Kroger’s lead independent director, as interim CEO and Chairman, effective immediately.
The board became aware of concerns regarding McMullen’s personal conduct on February 21 and promptly engaged external independent counsel to conduct an investigation, overseen by a special board committee. The company emphasized that the conduct in question was unrelated to Kroger’s financial performance, operations, or reporting, and did not involve any Kroger associates.
McMullen’s departure marks the end of a 47-year tenure at Kroger, during which he rose from a part-time stock clerk to CEO in 2014. Under his leadership, Kroger expanded its digital presence and pursued strategic growth initiatives. However, his resignation comes amid challenges, including the Federal Trade Commission’s (FTC) decision in December 2024 to block Kroger’s proposed $24.6 billion merger with Albertsons on antitrust grounds.
As a result of his resignation, McMullen forfeited approximately $11.2 million in unvested stock and options and is ineligible for a bonus for the fiscal year ending February 1, 2025.
Ronald Sargent brings extensive retail experience to his interim role. He began his career at Kroger, later serving as CEO of Staples from 2002 to 2016, and has been a member of Kroger’s board since 2006, becoming lead director in 2017.
Kroger has initiated a search for a permanent CEO, engaging a nationally recognized executive search firm. Mark Sutton has been appointed as the new lead independent director during this transition period.
The leadership change occurs as Kroger continues to navigate a competitive grocery market and addresses the aftermath of the blocked merger with Albertsons, which has led to ongoing legal proceedings.
Despite these challenges, Kroger remains committed to delivering value to its customers and shareholders, with Sargent expressing confidence in the company’s experienced management team and dedicated associates.
