It isn’t every day that the person running the largest supermarket chain in America just walks away. But that is exactly what happened when Kroger says Rodney McMullen has resigned following an ethics probe, a move that sent shockwaves through the retail world and left investors scratching their heads. For a man who started as a part-time stock clerk in 1978 and spent nearly five decades climbing to the very top, the exit wasn't just abrupt. It was clinical.
The announcement hit the wires on March 3, 2025. It stated that McMullen's departure was the result of a board investigation into "personal conduct."
Honestly, the timing couldn't have been worse. Kroger had just spent two years in a grueling, ultimately failed legal battle to merge with Albertsons. The deal was supposed to be McMullen's legacy. Instead, he left the building with no bonus, no unvested stock, and a whole lot of unanswered questions.
Why Kroger Says Rodney McMullen Has Resigned Following An Ethics Probe
The official word from Cincinnati is that the board became aware of "certain personal conduct" on February 21. They didn't wait around. They immediately hired outside counsel and started digging. Within ten days, the probe was over, and McMullen was out.
The company has been very specific about two things:
- The conduct was "unrelated to the business."
- It didn't involve any other Kroger employees.
Basically, whatever happened was a private matter that nonetheless crossed a line in Kroger’s Policy on Business Ethics. While the rumor mill on Reddit and X (formerly Twitter) went into overdrive with wild theories, the courts have actually stepped in to keep the details quiet. In September 2025, a Delaware Chancery Court judge, Lori Will, ruled that Kroger does not have to disclose the specifics of the probe to Albertsons, who wanted to use the info in their breach-of-contract lawsuit.
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Judge Will noted that the evidence she saw "makes plain why [McMullen's] conduct prompted a quick exit," but she deemed the sensitive details of his personal life a "needless diversion" for the public record.
The Fallout of a $15 Million Exit
When a CEO of this stature leaves under a cloud, they usually lose their "golden parachute." McMullen is no exception. In 2023, his compensation package was valued at roughly $15.7 million. Because he resigned following an ethics inquiry, he forfeited his 2024 performance bonus and all unvested equity awards.
He did get to keep his fully vested shares, but the financial hit is still massive. It’s a stark ending for a guy who was once the face of "Restock Kroger" and the company’s digital transformation.
The board didn't leave a vacuum, though. They tapped Ronald Sargent, the former CEO of Staples and a longtime Kroger director, to step in as interim CEO. Sargent has been steadying the ship, but he’s already signaled that he isn’t looking for the permanent gig. He’s 69, and he’s mostly there to keep the lights on while the search committee finds a fresh face—likely someone from outside the company's traditional ranks.
A Legacy Complicated by the Albertsons Disaster
You can't talk about Rodney McMullen's exit without talking about the merger that never was. For 24 months, McMullen was the loudest voice in the room defending the $25 billion tie-up with Albertsons. He testified in federal courts. He argued that the merger was the only way to beat Walmart and Amazon.
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Then, in December 2024, a judge in Oregon blocked the deal.
The merger's collapse was a body blow. Not only did it cost Kroger nearly $1 billion in legal and administrative fees, but it also left them vulnerable to lawsuits from the very company they tried to buy. Now, as 2026 kicks off, Kroger is still untangling that mess. The fact that the CEO who championed the deal is gone because of a personal ethics issue just adds a layer of "bad look" to an already difficult situation.
Leadership Changes in the Grocery Aisle
Kroger isn't the only one seeing a "Changing of the Guard." We've seen a massive wave of C-suite exits across the industry lately:
- Walmart: Doug McMillon announced his retirement, with John Furner taking the lead.
- Target: Brian Cornell is also prepping for an exit, handing over to Michael Fiddelke.
- Albertsons: Susan Morris took over as CEO after Vivek Sankaran retired in May 2025.
It feels like the era of the "lifer" CEO is ending. McMullen was at Kroger for 47 years. That kind of tenure is almost unheard of now.
What This Means for Your Grocery Bill
You might wonder why a CEO's personal life matters to someone just trying to buy a gallon of milk.
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Business experts argue that leadership stability directly affects store operations. Under interim leader Ron Sargent, Kroger has already started pulling back on some of McMullen’s more "experimental" bets, like the massive automated warehouses built with Ocado. They’re refocusing on "core grocery"—meaning better prices on the shelf and fewer robots in the back.
The company is actually doing okay financially, despite the drama. They recently reported that earnings are hitting the high end of their guidance. They’re even doing a $7.5 billion stock buyback to keep investors happy while they look for a new leader.
Actionable Insights for Investors and Employees
If you’re watching Kroger closely, here’s what you should actually be looking for in the coming months:
- The New CEO Search: The board has stated they want a permanent replacement by the end of Q1 2026. If they hire an "outsider," expect a major shift in how the stores are run. An outsider often means more aggressive cost-cutting.
- The Albertsons Litigation: Even though the merger is dead, the legal battle continues. Watch the Delaware and Ohio court filings; they will determine how much of the "breakup fee" Kroger actually has to pay.
- Focus on Private Labels: Kroger is leaning hard into its "Our Brands" (like Simple Truth). This is their highest-margin area and their best weapon against inflation.
- Digital Growth: Without the Albertsons scale, Kroger has to grow its delivery business organically. Watch their partnership with third-party apps like Instacart and DoorDash to see if they can maintain their market share.
The story of Rodney McMullen’s resignation is a reminder that in the corporate world, your "personal conduct" is never truly private when you’re at the helm of a Fortune 500 company. It’s a quiet, somewhat sad ending to a legendary career that started with bagging groceries in Kentucky.
Keep an eye on the official Q4 earnings call. That’s where the board will likely give the next big update on the CEO search and the final financial tally of the merger's failure.