Cincinnati — The chairman and chief executive officer of Kroger Co., 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 its lead director, Ronald “Ron” Sargent, to serve as chairman of the board of directors and interim CEO, effective immediately. Mark Sutton will serve as Kroger’s lead independent director, also effective immediately.
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,” says 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.
“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,” says Sutton. “Kroger will continue to deliver for our customers, invest in our associates, strengthen our communities and reward our shareholders under Ron’s leadership.”
According to The New York Times, McMullen had been with Kroger since 1978 — first as a part-time stock clerk in Lexington, Ky., and eventually working his way up to the CEO post by 2014. He was named chairman in 2015.
SOURCE: The Kroger Co. / The New York Times