Kroger’s CEO, Rodney McMullen, has resigned immediately after an investigation found his personal behavior did not match the company’s ethics rules. The company’s board started looking into McMullen’s conduct last month when they were informed about it. The investigation showed his actions were not linked to Kroger’s business performance, operations, or any employees. However, his behavior was still against the company’s ethical standards.
Ronald Sargent, who has been on Kroger’s board since 2006, will now act as the temporary CEO until a permanent replacement is found. Sargent said he will work with the management team and employees to keep providing good value to customers.
McMullen had been with Kroger for almost 50 years, starting as a part-time stock clerk in 1978. He worked his way up to become CEO in 2014. His resignation comes a few months after Kroger’s failed $25 billion merger with Albertsons, which was stopped due to regulatory issues. Albertsons even sued Kroger, claiming they didn’t try hard enough to get approval for the merger.
Following the news of McMullen’s resignation, Kroger’s stock dropped by about 1% in premarket trading. The company assured that McMullen’s behavior had no impact on its financial or operational performance.
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