Kroger CEO resigns amid internal investigation
Kroger CEO resigns amid internal investigation
Kroger Chairman and CEO Rodney McMullen has resigned from the company following a board investigation of his personal conduct that, while unrelated to the business, was inconsistent with Kroger's policy on business ethics. The board has appointed Lead Director Ronald Sargent to serve as chairman of the board of directors and interim CEO, effective immediately. The board also announced that Mark Sutton will serve as Kroger's lead independent director, also effective immediately.
On Feb. 21, the board was made aware of certain personal conduct by McMullen and immediately retained outside independent counsel to conduct an investigation, which was overseen by a special board committee. McMullen's conduct is not related to the company's financial performance, operations or reporting, and it did not involve any Kroger associates.
The board of directors has formed a search committee and engaged a nationally recognized firm to conduct a 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. My decades here have given me a full appreciation of what makes Kroger unique, and I am excited to work even more closely with this talented team. I plan to be a steady, but active hand in the execution of our strategy."
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. Sargent is a veteran retail operator and leader with 35 years of experience, including as the chairman and CEO of Staples Inc. from 2002 to 2016 after joining the company in 1989. He currently serves on the board of Wells Fargo & Co., where he is chair of the human resources committee, and the board of Five Below Inc. In connection with his new role, Sargent will step down from his service on the audit committee, the corporate governance committee and the public responsibilities committee.
"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," said Mark Sutton, Kroger's newly appointed lead independent director. "Kroger will continue to deliver for our customers, invest in our associates, strengthen our communities, and reward our shareholders under Ron's leadership."
