Following an investigation by the board for personal conduct, Kroger (KR.US) CEO has stepped down.

U.S. retailer Kroger (KR.US) announced that its chairman and CEO Rodney McMullen has resigned from the company following an investigation by the board of directors into his behavior, which was found to be inconsistent with the company's code of business ethics.

Kroger revealed that the board of directors became aware of certain personal conduct of Rodney McMullen on February 21 and immediately retained an independent outside counsel to investigate, which was supervised by a special committee of the board. The company emphasized that Rodney McMullen's personal conduct was unrelated to the company's financial performance, operations or reporting, and did not involve any of the company's affiliates.

Kroger said its board of directors has appointed Ronald Sargent, chief director, as chairman and interim CEO, effective immediately. The board also announced that Mark Sutton will serve as Kroger's lead independent director, also effective immediately. In addition, the board has established a search committee and retained a nationally recognized firm to find Kroger's next CEO. Ronald Sargent has agreed to serve in this role until the next CEO is appointed.

Kroger will report its fourth-quarter 2024 earnings on March 6, Eastern Time. The company had expected full-year 2024 same-store sales (excluding fuel) to grow 1.20%-1.50% and adjusted EPS of $4.35-$4.45 in its third-quarter earnings released in December. Notably, the latest guidance provided by the company indicates that both metrics are expected to be at the high end of the guidance range.

As of the time of writing, Kroger's shares fell more than 1% before the market opened on Monday.