Quick Facts About Rodney McMullen: Net Worth, Resignation, Family, Lawsuits and More

Rodney McMullen, the long-time chairman and CEO of Kroger, has stepped down in a dramatic turn of events following an internal investigation into his personal conduct. The announcement sent shockwaves through the corporate world, as McMullen, who has been at the helm of the supermarket giant for over a decade, now faces scrutiny over his leadership decisions and the controversies surrounding Kroger's failed merger and stock buyback scheme.

Kroger confirmed on Monday that McMullen's departure was due to conduct 'inconsistent with Kroger's policy on business ethics' but stressed that it was unrelated to the company's financial performance or operations, according to CNN. The board revealed that it had been made aware of McMullen's personal conduct on 21 February 2025, prompting an immediate investigation led by independent counsel. The inquiry, overseen by a special board committee, ultimately led to McMullen's resignation, as reported by Kroger's official statement.

Ronald Sargent, a long-standing board member, has been appointed as interim CEO, while Mark Sutton will serve as Kroger's lead independent director.

Early Life and Career

Born in Pineville, Kentucky, McMullen was the first in his family to attend university. He earned both a bachelor's and a master's degree in accounting from the University of Kentucky. His journey at Kroger began in 1978 when he took on a part-time role as a stock clerk in Lexington. Over the years, he rose through the ranks, holding key positions such as assistant treasurer, corporate controller, chief financial officer, and eventually vice chairman.

By 2003, McMullen had secured a seat on Kroger's board of directors. In 2009, he became president and chief operating officer before being named CEO in 2014. A year later, he was appointed chairman of the board, solidifying his role as the company's top executive, per Cincinnati Enquirer.

Net Worth and Salary

McMullen has amassed substantial wealth during his tenure at Kroger. His estimated net worth stands at around £17.9 million ($22.7 million), primarily due to stock holdings and executive compensation. Financial records indicate that he earned £12.4 million ($15.7 million) in total compensation from Kroger in 2023. Additionally, he owns more than 6,000 shares in the company, valued at approximately £1.3 million ($1.6 million).

Controversies and Legal Battles

McMullen's exit comes amidst mounting pressure over Kroger's business decisions. In late 2024, the company abandoned its £19.8 billion ($25 billion) merger with Albertsons following intense regulatory scrutiny. Shortly after, Albertsons sued Kroger for allegedly breaching contractual obligations, claiming that Kroger had failed to take 'any and all actions' necessary to secure regulatory approval, as reported by CNN.

Adding to the turbulence, Kroger's announcement of a £5.9 billion ($7.5 billion) stock buyback plan sparked outrage among union groups. The United Food and Commercial Workers International Union (UFCW) strongly opposed the move, describing it as 'a massive giveaway to shareholders' while calling for McMullen's removal, according to Supermarket News. Critics argued that rather than funnelling money to investors, Kroger should have reinvested in employee wages, store improvements, and price reductions for customers.

Future of Kroger

In the wake of McMullen's departure, Kroger's board has formed a search committee and retained a nationally recognised firm to identify his successor, as stated in Kroger's official announcement. The company expects its full-year identical sales without fuel to be at the high end of its guidance range, with adjusted earnings per share slightly exceeding expectations. Kroger will hold its fourth-quarter earnings call on 6 March 2025, where it will provide further updates on its financial outlook.

As McMullen exits, interim CEO Ronald Sargent has vowed to restore stability and refocus the company's priorities. Kroger now faces the challenge of rebuilding investor confidence while managing ongoing legal disputes and increasing competition in the supermarket industry.