The CEO of the mega-store, Kroger, has faced a shock resignation over mysterious ‘personal conduct’ which has apparently cost him $11.2 million worth of unvested stock.
Rodney McMullen, 64, was asked to step down from the corporation with bosses highlighting that the scandal in question was ‘unrelated to the business’ and was also ‘inconsistent with Kroger’s policy on business ethics’, which has led to speculation amidst the scandal.
The terms of his leaving are different from a usual voluntary termination or retirement due to the circumstances, which still remain unclear.
Kroger released a statement that ensured that even though he will forfeit all unvested equity awards outstanding under the Company’s 2019 Long-Term Incentive Plan, as well as not receiving his 2024 bonus payment, he will retain any equity awards.
Despite missing out on his bonus pay and other luxuries, he has been able to keep $14.7 million worth of stock and options that were vested as of his initial resignation; if he had delayed his resignation he would have kept an additional $6.3 million worth of that same stock.
Looking back at McMullen’s history at the company, he started his career back in 1978 as a part-time stock clerk, working his way up through the company, becoming chief financial officer in 1995 and chief operating officer in 2009; five years later in 2014, he was named as the CEO and the following year he became chairperson.
It is estimated that his net worth is at least $22.7 million. He owns over 6000 units of Kroger stock which is valued at over $1.6 million, living in a $1.5 million mansion with four bedrooms and seven bathrooms, based in Cincinnati, Ohio, with his wife, Kathryn McMullen.
Although Kroger has said the resignation is unrelated, it came just months after the $25 billion merger with Albertsons fell apart in December of last year. It was originally proposed in 2022 after it was urged to help them against other big retailers such as Target and Amazon.
A federal and state judge declined the deal in early December, which would have been the biggest grocery store merger in US history.
