Kroger CEO Rodney McMullen resigns over ethics policy violation

Rodney McMullen, the CEO of an American retail company, Kroger, resigned immediately on Monday following an internal investigation that found his personal conduct was “inconsistent” with the company’s ethics policies.
Kroger’s board launched the probe last month after becoming aware of concerns related to McMullen’s behaviour. While the company did not disclose specific details, it confirmed the matter was unrelated to its financial performance, operations, or employees.
As reported by CNN, Ronald Sargent, a Kroger board member since 2006, has been appointed interim CEO until a permanent replacement is found.
"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 statement.
McMullen, who began his career at Kroger in 1978 as a part-time stock clerk, had led the company since 2014. Under his leadership, Kroger’s revenue grew from $98 billion to $150 billion, and the company acquired supermarket chains Harris Teeter and Roundy’s.
However, his tenure ended amid controversy, just months after Kroger abandoned its $25 billion merger with Albertsons due to regulatory pressure from the previous U.S. administration.
According to The Independent, Albertsons subsequently sued Kroger, accusing it of failing to use its "best efforts" to secure regulatory approval for the merger. The lawsuit alleges Kroger's actions directly contributed to the deal’s collapse.
Kroger’s lead independent director, Mark Sutton, defended the company’s future under Sargent. "Over the years, Ron has played an integral role in the development and approval of Kroger’s strategy, which has led us to the position of strength where we are today," Sutton said.
Following the announcement, Axios reported that Kroger’s stock dropped by 3 per cent in early trading on Monday.