Kroger CEO Rodney McMullen resigns

The Kroger Co. Chairman and CEO Rodney McMullen has resigned following a board of directors' investigation of his personal conduct that, while unrelated to the business, was inconsistent with Kroger's Policy on Business Ethics, the company said in a news release.

On Feb. 21, Kroger's 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, the release said. McMullen's conduct is not related to the company's financial performance, operations or reporting, and it did not involve any Kroger associates, the company said.

The board has appointed Lead Director Ronald "Ron" Sargent to serve as board chairman and interim CEO. Kroger said the board 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, the release said.

"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," Sargent said. "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, the company said. 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, the release said. He currently serves on the board of Wells Fargo and Company, 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, the company said.

"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."

Kroger said it expects full-year identical sales without fuel to be at the high end of its guidance range and full-year adjusted earnings per share to be slightly above the high end of its guidance range. The company will report its fourth quarter and full-year 2024 results, as well as full-year 2025 guidance, during its fourth quarter 2024 earnings conference call at 10 a.m. ET on Thursday, March 6, the release said.