FOR IMMEDIATE RELEASE: Dec. 13, 2024

CONTACT: Carter Dougherty, carter@ourfinancialsecurity.org 

Union, Financial Reformers Seek Replacement of CEO Rodney McMullen
McMullen wants to spend $7.5B in buybacks after ill-advised merger effort

One day after a failed mega-merger attempt with Albertsons, Kroger launched plans to repurchase a massive $7.5 billion of their own stock, a clear effort to boost short-term stock prices and save CEO Rodney McMullen’s job by lining the pockets of its already wealthy shareholders. 

“Kroger’s massive payout to Wall Street is outrageous. It is yet another example of how large corporations with huge power over whether and under what terms we get basic necessities like food serve Wall Street interests — to the detriment of workers and consumers,” said Natalia Renta, associate director of corporate governance and power at Americans for Financial Reform Education Fund. “Kroger’s priority is clearly lining the pockets of rich Wall Street shareholders over promises to workers and consumers.”

This enormous stock buyback, which includes $5 billion to be paid on an accelerated timetable, is an egregious flip-flop – 24 hours after the failed merger – from promises it made while the merger was under consideration. Previously, the company had said it would reduce its prices for consumers and boost worker wages. 

“At a time when our stores need significant investments in staffing, repairs and remodels and our customers need relief from high prices, it is outrageous that Rodney McMullen would try to distract attention from his multiple failures as CEO by announcing a massive one-time giveaway to shareholders,” said Kim Cordova, President of UFCW Local 7 in Colorado and Wyoming.

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