Grocery giant Kroger said Monday (March 3) that Chairman and CEO Rodney McMullen resigned from the company after a board investigation of his personal conduct.
The company did not specify the personal conduct but said in a press release that it “while unrelated to the business, was inconsistent with Kroger’s Policy on Business Ethics.”
Kroger added that McMullen’s conduct is not related to the company’s financial performance, operations or reporting and did not involve any company employees.
The company appointed lead director Ronald Sargent to serve as chairman of the board of directors and interim CEO, effective immediately, and he will serve in that role until Kroger appoints a new CEO after conducting a search with the help of a nationally recognized firm, according to the release.
In addition, Mark Sutton will serve as the company’s lead independent director, the release 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,” Sutton said in the release.
Sargent has 35 years of experience as a retail operator and leader, according to the release.
He has been a director at Kroger since 2006 and served as lead director since 2017, the release said.
Sargent joined Staples in 1989 and served as that company’s chairman and CEO from 2002 to 2016, per the release.
“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 the release.
Ahead of the company’s fourth-quarter earnings report scheduled for Thursday (March 6), Kroger said in the release that it expects its full-year identical sales without fuel to be at the high end of its guidance range and its full-year adjusted earnings per share to be slightly above the high end of its guidance range.
Kroger said in a December earnings report that it expected to see identical sales growth of 1.2% to 1.5% in the fourth quarter, with a continued focus on digital engagement and customer loyalty.
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