Kroger chairman and Chief Executive Officer (CEO) Rodney McMullen stepped down Monday following an internal investigation into his personal conduct.
Kroger stated the investigation was unrelated to the business and did not involve any associates but that McMullen’s conduct was “inconsistent with Kroger’s Policy on Business Ethics,” according to a press release.
McMullen has served with the company since 1978, according to a company profile page. Starting as a part-time stocker at a Kentucky location, he eventually worked his way up the corporate ladder, being elected to the Board of Directors in 2003. He was elected to the roles of president and chief operating officer in 2009, then CEO in 2014. He became the Board’s chairman in 2015.
The company was first made aware of the concerns Feb. 21 and instantly started their review which was overseen by a special board committee. (RELATED: Stellantis CEO Carlos Tavares Abruptly Resigns)
In November 2022, Republican Arkansas Sen. Tom Cotton confronted McMullen over Kroger’s decision to fire two workers from an Arkansas store in 2019 after they refused to wear logos they allegedly thought represented the rainbow Pride Flag. The company claimed the aprons featuring rainbow-colored hearts were not meant to promote the LGTBQ movement and the employees were not terminated over their religious views.
“I’ve cautioned [Big Tech companies] for years, that if they silence conservatives and center-right voters … if they discriminate against them in their company, they probably shouldn’t come and ask Republican senators to carry the water for them whenever our Democratic friends want to regulate them or block their mergers,” Cotton stated during a Senate Judiciary Committee hearing on the proposed merger between the Kroger and Albertsons grocery chains.
“I’m sorry that’s happening to you. Best of luck.”
Senator @TomCottonAR blasts woke Kroger CEO for expecting Republicans to come to their defense. pic.twitter.com/L9j82kDraA
— Townhall.com (@townhallcom) December 6, 2022
Cotton cautioned his Republican colleagues about supporting companies that engage in cultural issues — harming conservatives in the process.
The company was ordered to pay $180,000 to settle a lawsuit that arose from the firings.
The Board announced that McMullen would be replaced by Ronald “Ron” Sargent as chairman and interim CEO until a new appointment is made, according to the Kroger press release. They also announced Mark Sutton as Kroger’s lead independent director.
HOUSTON, TEXAS – SEPTEMBER 09: A customer walks into a Kroger grocery store on September 09, 2022 in Houston, Texas. Kroger stock increased six percent as the company surpassed profit and sales expectations. (Photo by Brandon Bell/Getty Images)
“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 in a statement.
Sargent has worked as a Kroger director since 2006 and as lead director since 2017. He previously served as Staples’ CEO from 2002 to 2016.
Kroger does not expect this shakeup to effect the financial prospects of the company and is estimating an uptick in full-year adjusted earnings per share.