KEY TAKEAWAYS
- Kroger shares are falling Monday morning after the grocery chain said that CEO and Chairman Rodney McMullen has resigned following a probe on his personal conduct.
- McMullen is stepping down “following a Board investigation of his personal conduct that, while unrelated to the business, was inconsistent with Kroger’s Policy on Business Ethics,” the company said.
- Lead Director Ron Sargent was appointed board chair and interim CEO.
Kroger (KR) shares are falling more than 1% Monday morning after the grocery chain said that CEO and Chairman Rodney McMullen has resigned after a probe on his personal conduct.
McMullen is stepping down “following a Board investigation of his personal conduct that, while unrelated to the business, was inconsistent with Kroger’s Policy on Business Ethics,” the company said.
Kroger said it “was made aware of certain personal conduct by Mr. McMullen” on Feb. 21 “and immediately retained outside independent counsel to conduct an investigation.” Kroger also said McMullen’s conduct wasn’t related to its “financial performance, operations or reporting, and it did not involve any Kroger associates.”
Kroger declined to comment further Monday.
Lead Director Ronald Sargent was appointed board chair and interim CEO, according to a news release.
McMullen joined Kroger in 1978 as a part-time stock clerk in Lexington, Kentucky, according to his biography on the Kroger website, and became CEO in 2014.
Several CEOs in recent years have lost their jobs for personal relationships or other issues that ran afoul of company policies. According to outplacement firm Challenger, Gray & Christmas, seven CEOs left due to allegations of misconduct in 2024 through October last year.
Shares of Kroger, which is scheduled to report earnings Thursday, are up about 30% in the past 12 months.
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