Kroger CEO Rodney McMullen has stepped down from his position due to a scandal surrounding “personal conduct,” resulting in a $11.2 million forfeiture of unvested stock and options. McMullen, 64, was alerted to the issue on February 21 and resigned on Monday, claiming it is unrelated to the business.
The company stated that McMullen’s departure is not related to financial performance, operations, or reporting. However, the terms of his departure appear harsher than typical voluntary terminations or retirements. McMullen forfeited $11.2 million worth of unvested stock and options due to the scandal.
McMullen’s compensation from Kroger in 2023 was $15.7 million, with an estimated net worth of at least $22.7 million. The former CEO has been involved in various high-profile positions within the company, including chief financial officer and chief operating officer.
The merger between Kroger and Albertsons, which was originally proposed in 2022, has faced multiple legal challenges, including a federal trade commission challenge. Both a federal and state judge blocked the deal on December 10, citing concerns about reduced competition and increased grocery prices for consumers.
McMullen’s resignation marks another significant departure from the company following its failed merger attempt. The exact details of the scandal surrounding McMullen’s “personal conduct” remain unclear, but the consequences are significant, with $11.2 million lost in unvested stock and options.
Source: https://www.dailymail.co.uk/news/article-14461157/Kroger-CEO-Rodney-McMullen-resignation-personal-conduct-cost.html