Kroger’s former CEO, Rodney McMullen, has forfeited over $11 million worth of unvested stock and options due to his resignation over unspecified personal conduct. The 64-year-old executive, who was one of the highest-paid CEOs in the Greater Cincinnati region last year, will also lose eligibility for a bonus for the fiscal year that ended on February 1.
McMullen’s departure from Kroger is attributed to conduct “inconsistent with Kroger’s policy on business ethics.” The company did not disclose the exact reason for his resignation. As one of Kroger’s top executives, McMullen owned approximately 6.6 million shares, worth around $412 million at Monday’s closing price.
The Enquirer reviewed Kroger’s proxy and found that McMullen might have kept an additional $6.3 million in stock and options if he had delayed his resignation by eight days to allow more equity awards to vest. He may also have lost millions in potential bonus pay, having collected over $4 million each year from the incentive plan between 2021 and 2022.
McMullen was allowed to keep $14.7 million worth of vested stock and options as part of his resignation package. However, this amount is lower than what would be typically awarded to an employee with similar circumstances under Kroger’s employment plan for managers.
Source: https://eu.cincinnati.com/story/money/2025/03/04/kroger-filings-show-severance-details-after-ceo-rodney-mcmullens-exit/81353430007