Kroger Is Vague About CEO Departure
/
Kroger’s CEO is leaving the company, but the reason is unclear. The official statement—and no word from the outgoing CEO—leaves us wondering what happened, which could conjure even worse stories.
The statement says Rodney McMullen, who started his career as a stock clerk while in college in 1978, left because of “his personal conduct that, while unrelated to the business, was inconsistent with Kroger's Policy on Business Ethics.” We’re told that an investigation happened, and we’re told what the conduct was not: “not related to the Company's financial performance, operations or reporting, and it did not involve any Kroger associates.”
Naturally, I’m curious. This sounds like a sad ending for a distinguished career. Unlike other leader-departure statements, we see no acknowledgement of McMullen’s long tenure at the company. Other issues might contribute to the traditional missing quotes about a leader’s contribution: McMullen led an attempted acquisition of Albertsons, which failed because of regulatory issues, and now Albertsons is suing the company for failing to do enough.
My imagination is going wild. I wonder whether it’s worse to keep the “conduct” a secret, although I’m guessing the decision protects McMullen’s privacy and dignity. The company’s objective is to assure investors that the behavior hasn’t affected business—although of course it does. Shares fell after the news, compounded by sales falling below expectations.
As usual in these situations, what’s called a “resignation” probably isn’t—at least not in the way you or I would resign from a job. This, too, preserves McMullen’s dignity.
