Kroger ousts longtime CEO after ethics probe uncovers ‘personal conduct' issue

Core Points - Kroger's CEO Rodney McMullen has resigned following an investigation into his personal conduct that was inconsistent with the company's ethics policy [1][2] - The adverse conduct was not related to Kroger's financials and did not involve any company associates [2] - Ronald "Ron" Sargent, Kroger's lead director, has taken over as interim chairman and CEO while a search committee looks for a permanent replacement [3][8] - Kroger's shares fell by 1% on the morning following the announcement of McMullen's resignation [3] - The resignation comes shortly after the Federal Trade Commission blocked Kroger's $25 billion merger with Albertsons on antitrust grounds [3][4] - Albertsons has filed a lawsuit against Kroger, claiming it failed to make "best efforts" to secure regulatory approval for the merger [7] - McMullen had been with Kroger for over 45 years, serving as CEO for more than a decade [7][8] - Kroger is expected to report its fourth quarter and annual 2024 earnings soon, with projections indicating full-year sales without fuel at the high end of expectations and adjusted earnings per share exceeding predictions [8]