Kroger CEO Rodney McMullen Out after Board Investigation

by | Mar 3, 2025

McMullen Out After Investigation
Rodney McMullen, CEO of Kroger, has resigned after a board investigation into his personal conduct, bringing an end to his more than 40-year career with the company. Kroger stated that while McMullen’s conduct was not related to the company’s business operations, financial performance, or any Kroger employees, it did violate its business ethics policy. The board learned of the issue on Feb. 21 and immediately launched an independent investigation. Under McMullen’s stewardship Kroger has delivered 14% TSR (total shareholder return).

Will VF Corp Board Be Impacted?
The findings of Kroger’s investigation will also be of interest to the board and shareholders at VF Corp where McMullen has been on the board since 2016. While VF Corp’s stock has surged in the past year, it remains down -22% over three years and is down -6% over McMullen’s 9+ year tenure. Will the VF Corp board see this as an opportunity to accelerate a needed refresh?

Sargent Appointed Interim CEO While Also on WFC and FIVE Boards
Kroger has appointed lead director Ronald Sargent as interim CEO and chairman. Sargent, a board member since 2006 and lead director since 2017, said he plans to provide “a steady, but active hand” in executing the company’s strategy. Previously CEO of Staples, Sargent also currently serves on the board of Wells Fargo & Company (NYSE: WFC) and Five Below (NASDAQ: FIVE). While Wells Fargo is on the upswing in CEO Charles Scharf’s fifth year as CEO, Five Below is struggling with its stock down 57% in just the past year and new CEO Winnie Park only a few months into her tenure. Shareholders of all three companies will want to know if Sargent truly has the capacity to devote the necessary time and focus to three companies given one has been in serious decline already and he’s just become interim CEO at another.

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