McMullen Out As Kroger CEO
Rodney McMullen is out as chairman and CEO of Kroger following an investigation into his “personal conduct” by the company’s board of directors.
Kroger issued a statement that did not offer details of the investigation, but noted the conduct in question, while unrelated to the business, was inconsistent with the company’s Policy on Business Ethics.
The board has appointed Lead Director Ronald Sargent as chairman and interim CEO, effective immediately. The board also announced that Mark Sutton will serve as Kroger's lead independent director, effective immediately.
On February 21, the Board became aware of an issue related to McMullen's personal conduct and immediately retained outside independent counsel to conduct an investigation, which was overseen by a special board committee. McMullen's conduct was unrelated to the company's financial performance, operations, or reporting and did not involve any Kroger associates.
The Board of Directors has formed a Search Committee and engaged a nationally recognized firm to search for Kroger's next CEO. Sargent has agreed to serve in his role until the appointment of the next CEO.
"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," said Sargent. "Kroger has been a special place throughout my retail career after spending summers in college working in stores, as well as my first 10 years after business school at corporate headquarters, before more recently serving as lead independent director."
Sargent has been a Kroger director since 2006 and has served as the lead director of Kroger since 2017. He spent the first 10 years of his professional career at Kroger, working in several roles across stores, sales, marketing, manufacturing, and strategy.
With 35 years of experience, Sargent’s career includes his time as chairman and CEO of Staples from 2002 to 2016. He also serves on the board of Wells Fargo & Company, where he is chair of the Human Resources Committee, and the board of Five Below, Inc.
