Kroger expels longtime CEOs after investigating personal behaviour
Longtime Kroger CEO Rodney McMullen resigned after an internal investigation determined that his personal actions were “inconsistent” with the company’s ethical policies.
Reuters
Kroger paid former CEO Rodney McMullen $15.4 million in 2024. This was the final year before he resigned on March 3rd after an ethical investigation by the company. The amount fell slightly from his previous year’s salary, according to a company filing with the Securities and Exchange Commission.
A year ago, the former CEO of the country’s largest supermarket retailer was paid $15.5 million, according to the executive fee methodology that excludes changes in pension values.
Kroger’s board member and former Staples CEO Ron Sargent took over the retailer after McMullen’s exit. For more than 11 years, the CEO has resigned in an investigation into his “personal behavior” that it was “inconsistent” with the grocery store’s business ethics policy, the grocery store said.
Sgt., 69, said in a conference call days later, Kroger would conduct a national search for successors and consider both internal and external candidates for the CEO position. The company has not given a timeline to name McMullen’s permanent successor.
Median workers saw pay rises in executive shuffle
In 2024, a typical Kroger worker’s salary rose by $2,900, and in 2024 it rose 9% to $34,213. McMullen’s wage ratio to median Kroger workers the government needs to report is between 457 and 1, narrowing from the previous ratio of 502-1 in the previous year.
Kroger’s agent, filed on May 15, reflected the recent executive sales splate as half of the “nominated executive officers.” The filing lists three current executives still employed at Kroger. Mary Ellen Adcock, the company’s leading merchant and marketing director. Yael Cosset, digital director of retailers. Timothy Massa is Associate Experience Officer (Human Resources and Labor Relations Director).
In addition to McMullen, the proxy lists two other former Kroger executives. Former Chief Financial Officers Gary Millerchip (who left Kroger at Costco in early 2024) and Todd Foley (who served as interim financial officers until his retirement this spring).
Profitable Fortune 500 companies doing business in 35 states
Kroger, a Fortune 500 company, won $2.7 billion in profits in 2024 with $147.1 billion in sales.
In addition to Kroger’s store, the Cincinnati-based grocery store operates several regional supermarket chains in 35 states, including Fred Meyer, Harris Teaser, Ralphs, Mariano, Frye, Smith, King Supers and QFC. The company has more than 2,700 stores and employs 409,000 workers.
