Kroger CEO Rodney McMullen resigns amid board investigation

Kroger's Chairman and CEO Rodney McMullen has resigned following an internal investigation into personal conduct deemed inconsistent with the company's business ethics policy. The investigation, which was initiated after the board became aware of the matter on February 21, found no links to Kroger's financial performance or operations. Ronald Sargent, a long-time board member, has been appointed as chairman and interim CEO, with a commitment to maintaining operational stability. Kroger is now in the process of searching for a permanent CEO while reaffirming its financial outlook amid this leadership transition. McMullen's departure comes after Kroger's failed merger attempt with Albertsons, which was halted due to regulatory concerns. Kroger shares dropped more than 3.5% following the announcement of McMullen's resignation.