By johnathan 
Long-standing leader steps down after internal probe; Ronald Sargent appointed interim CEO as company navigates leadership transition
Kroger, the largest grocery chain in the United States, announced on Monday that Chairman and CEO Rodney McMullen has resigned following an internal investigation into his personal conduct. The company stated that while McMullen’s actions were unrelated to business operations, they were inconsistent with Kroger’s Policy on Business Ethics.
The board became aware of the situation on February 21 and promptly engaged independent counsel to conduct a thorough investigation, overseen by a special committee. The findings concluded that McMullen’s conduct did not involve company finances, operations, or other employees.
Ronald “Ron” Sargent, a board member since 2006 and lead director since 2017, has been appointed as interim CEO and chairman. Sargent, the former Chairman and CEO of Staples, brings extensive leadership experience to his new role at Kroger.
McMullen’s departure marks the end of a notable tenure at Kroger. Starting as a part-time stock clerk in 1978, he ascended through various leadership positions, becoming CEO in 2014 and chairman in 2015.
This leadership change occurs amid other significant developments for Kroger. Recently, the company terminated its proposed $25 billion merger with Albertsons due to regulatory challenges, leading Albertsons to file a lawsuit alleging breach of contract. Additionally, Kroger announced a $7.5 billion stock buyback plan, a move that has drawn criticism from some labor unions.
Despite these challenges, Kroger maintains a positive financial outlook. The company expects full-year identical sales, excluding fuel, to be at the high end of its guidance range, with adjusted earnings per share slightly surpassing expectations.
As Kroger embarks on the search for a permanent CEO, Sargent expressed confidence in the company’s resilience, stating, “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.”
The board has initiated a comprehensive search for McMullen’s successor, aiming to steer the company through this transitional period while upholding its commitment to ethical standards and operational excellence.