In a year marked by leadership upheaval, Kroger Co. paid its outgoing CEO Rodney McMullen a total of $15.6 million in fiscal 2024—just before he stepped down in the wake of a board-led investigation into his personal conduct.
The payout, disclosed in Kroger’s recently filed proxy statement with the U.S. Securities and Exchange Commission, reflects only a modest 0.5% decrease from the previous year’s compensation of $15.7 million. Despite mounting scrutiny and a challenging grocery retail landscape, McMullen’s compensation remained largely unchanged during his final year at the helm.
Cincinnati-based Kroger, the largest traditional supermarket operator in the United States, is navigating a turbulent time as it seeks to finalise its high-profile merger with Albertsons, currently under regulatory review by the FTC.
While the proxy did not disclose the specific nature of the conduct investigation that led to McMullen’s resignation, it confirmed that the board examined matters related to his personal behaviour. The findings of that probe remain confidential, but the departure was framed as a resignation.
In addition to the base pay and annual incentives, Kroger detailed certain elements of McMullen’s compensation structure as part of his exit package, though it remains unclear whether he received any severance enhancements.
McMullen, who served as CEO since 2014, oversaw major transformations at Kroger, including investments in e-commerce, expansion of private label brands, and aggressive competition with Walmart and Aldi. But his final chapter at Kroger ends under a cloud, leaving shareholders and employees grappling with questions about transparency and leadership accountability.
As the supermarket giant shifts focus to stabilising leadership and pursuing its strategic growth objectives, this revelation may spark debate about executive pay practices and corporate governance.