Why did the Kroger CEO resign? Reasons behind Rodney McMullen's ouster explored

Rodney McMullen, the CEO of American retail company Kroger, resigned on March 3, 2025, following a board investigation that found his personal conduct to be “inconsistent” with the company’s Policy on Business Ethics, as reported by NPR.

While the nature of the personal conduct that prompted the investigation remains undisclosed, it was noted that it was “unrelated to business” and not based on McMullen’s financial performance, operations, or reporting, nor did it involve any associates of Kroger, the company shared in a press release obtained by Reuters and NPR.

Kroger first learned of the alleged conduct breach involving its CEO on February 21, 2025. Subsequently, it engaged independent counsel from outside the company to investigate the issue, which a special board committee oversaw.

Following Rodney McMullen’s resignation, Kroger has appointed its lead director, Ronald Sargent, as the interim CEO, effective immediately. Sargent previously served as the CEO of office supplies retailer Staples for over a decade and is a board member and chair of the human resources committee at Wells Fargo.

According to the company's press release, Mark Sutton has replaced Sargent as the company’s lead independent director.

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More about Kroger CEO’s resignation

Rodney McMullen has worked at Kroger, a supermarket and multi-department store retailer, since 1978. He joined as a part-time stocker and later became the chief operating officer, chief financial officer, and board director.

During his tenure, the grocer acquired Harris Teeter and Roundy’s supermarkets. In 2014, he was appointed CEO, a position he held until his abrupt resignation on Monday for allegedly violating the corporate code of ethics, according to NPR.

Following this news, Reuters reported that the company’s shares fell by 1.4 percent in early trading, although they had more than tripled since McMullen began his leadership. Beam, a managing attorney at Florida-based personal injury law firm Douglas R. Beam, told Reuters:

"For investors, the risk is obvious — uncertainty.

"McMullen stepping down certainly puts Kroger in a vulnerable position. The company is already dealing with the aftermath of its abandoned Albertsons merger, and a leadership change at this stage can complicate things," Beam said.

Notably, amid his ouster, McMullen will not receive a bonus for 2024. According to Reuters, he earned $15.71 million in fiscal year 2023. Meanwhile, the company’s total sales increased from $98 billion to $150 billion. He is expected to receive full-year adjusted earnings after submitting his scheduled fourth-quarter report results on March 6, 2025.

Rodney McMullen, 64, resigned after the company’s unsuccessful two-year merger in December 2024. Under McMullen's leadership, the company aimed to acquire rival retailer Albertsons for $25 billion to address rising prices and compete more effectively with Walmart and Costco.

Meanwhile, the local union United Food and Commercial Workers urged the company's board to replace McMullen after announcing a $7.5 billion stock buyback plan. The group cited that the now-ousted executive attempted to "distract attention from his multiple failures as CEO by announcing a massive one-time giveaway to shareholders."

Notably, Albertsons also filed a lawsuit against Kroger, accusing it of breaching the contract of the merger deal, which was originally blocked by two court orders. The Joe Biden administration’s antitrust officials and many state attorneys general opposed the merger, as reported by NPR.

Kroger has formed a search committee and appointed a firm to find its next CEO, as Ronald Sargent serves as the interim CEO. Last month, the company announced it would lay off an unspecified number of employees, according to USA Today.

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It is not the only company to have removed CEOs for seemingly violating company guidelines. McDonald’s Steve Easterbrook and Hewlett-Packard’s Mark Hurd resigned in 2019 and 2010, respectively.