Kroger’s new interim CEO Ron Sargent is getting paid an annual salary of nearly $4.4 million and given a $3.9 million stock grant as the supermarket giant looks for permanent CEO, according to a filing with the U.S. Securities and Exchange Commission.
Sargent’s stock grant of nearly 61,000 restricted shares will vest in one year, according to the filing. The filing suggests Sargent could make more than $8 million in a year, but the company is conducting a national search for his replacement, which Sargent said would include both internal and external candidates. The company hasn’t provided a timeline for finding a new leader yet.
Autonomous technology: Kroger’s new test robot, ‘Barney’, checks prices, shelves for missing items
Sargent, 69, a board member and former CEO of office retail giant Staples, was tapped to lead the Cincinnati-based grocer after former CEO Rodney McMullen resigned following an internal ethics investigation that found his conduct “was inconsistent with Kroger’s policy on business ethics.”
Kroger has offered few details on McMullen’s abrupt exit. The grocer disclosed what McMullen didn’t do: The company said McMullen’s conduct didn’t affect the company’s accounting or involve mishandling of day-to-day business or involve questionable conduct with a subordinate. Kroger’s “Policy on Business Ethics” otherwise counsels employees to follow laws and regulations and avoid conflicts of interest.
The leadership switch comes as Kroger and the supermarket industry face multiple challenges, including:
Kroger operates more than 2,700 stores in 35 states and the District of Columbia, including 76 in Greater Cincinnati. The retailer operates stores under the Kroger banner name as well as Fred Meyer, Ralphs, Harris Teeter, Pick ‘n Save, Dillons, King Soopers, Mariano’s, Fry’s, QFC and others.
This article originally appeared on Cincinnati Enquirer: Kroger outlines massive pay package for interim CEO