Kroger’s chairman and CEO Rodney McMullen has resigned following an investigation into his personal conduct, which was deemed inconsistent with the company’s business ethics policy. The probe found that McMullen’s behavior had no relation to the grocery chain’s financial performance or operations.
McMullen will step down as interim chair of the board of directors and CEO after Ron Sargent, the lead director, took over the role effective immediately. A search committee has been formed to find McMullen’s replacement.
The company stated that McMullen’s conduct was unrelated to his business dealings and did not involve any Kroger employees. The executive shake-up comes after a failed $25 billion merger with rival Albertsons, but analysts do not anticipate major operating changes given the stability of the business and capable new leaders.
Kroger operates 2,750 stores in 35 states and the District of Columbia, including Harris Teeter, Mariano’s, Ralphs, and Smith’s. The company has recently announced a new CFO, David Kennerley, who will join the team on March 10.
Source: https://www.cbsnews.com/news/kroger-ceo-resigns-after-probe-into-personal-conduct