Kroger CEO Rodney McMullen resigned following a probe into his personal conduct, the grocery chain revealed on Monday.
The big picture: The resignation came after a board investigation found that McMullen’s personal conduct was inconsistent with Kroger’s Policy on Business Ethics, although it was unrelated to the company’s business.
- Rodney McMullen’s specific actions were not disclosed in the announcement, with Kroger only stating that the resignation was triggered by an investigation by an independent counsel into certain behavior discovered on Feb. 21.
- Ron Sargent, the lead director at Kroger, has stepped in as the interim chairman of the board of directors and CEO, effective immediately.
What we’re watching: Kroger’s board is now forming a search committee to find a replacement for McMullen.
- Despite McMullen’s departure, Kroger experienced a 1% drop in its shares on Monday.
Flashback: The CEO’s exit comes after a failed $25 billion merger with rival Albertsons, which was terminated in December after a judge temporarily halted the union.
Zoom out: Kroger, based in Cincinnati, Ohio, operates 2,750 stores across 35 states and the District of Columbia, including various chains like Harris Teeter, Mariano’s, Ralphs, and Smith’s.
What they’re saying: “Mr. McMullen’s conduct is not related to the Company’s financial performance, operations or reporting, and it did not involve any Kroger associates,” Kroger said in a statement.
