The CEO of Kroger Co. (KR.US) resigned after being investigated by the board of directors for personal conduct.

The American retailer Kroger Co. (KR.US) announced that its Chairman and Chief Executive Officer Rodney McMullen has resigned from the company, following an investigation by the board into his actions that were not in line with the company's business ethics policy. Kroger Co. revealed that the board learned of certain personal actions of Rodney McMullen on February 21st and immediately hired an external independent lawyer to investigate, overseen by a special board committee. The company emphasized that Rodney McMullen's personal actions were unrelated to the company's financial performance, operations, or reporting, and did not involve any affiliated companies. Kroger Co. stated that the board has appointed Lead Director Ronald Sargent as Chairman of the Board and interim CEO, effective immediately. The board also announced that Mark Sutton will serve as Kroger Co.'s Chief Independent Director, also effective immediately. Additionally, the board has formed a search committee and hired a nationally recognized firm to find the company's next CEO. Ronald Sargent has agreed to serve in this role until the appointment of the next CEO. Kroger Co. will announce its fourth quarter 2024 earnings on March 6th. In its third quarter earnings report released in December last year, the company projected that full-year same-store sales (excluding fuel) in 2024 would increase by 1.20%-1.50%, with adjusted earnings per share expected to be between $4.35 and $4.45. It is worth noting that the latest guidance provided by the company indicates that both of these metrics are expected to be at the higher end of the guidance range. As of the time of writing, Kroger Co. is down over 1% in pre-market trading on Monday.