The former CEO of Kroger has been ordered to provide an account as to why he was forced to resign from the grocery giant earlier this year as part of a lawsuit filed by songstress Jewel.
Rodney McMullen, 65, was the head of the firm since 2014 before standing down amid a probe into his personal conduct.
At the time of his abrupt exit, the company said his behavior was ‘inconsistent’ with its own policy of business ethnics.
McMullen’s departure has become a focal point in a lawsuit not related to his exit, Jewel sued Kroger over contractual issues relating to their Wellness Festival.
The songstress claims she was cut from the festival despite being central to it forming, and that she and her business partner are owed damages.
Lawyers for the ‘You Were Meant For Me’ singer argued that McMullen’s resignation could be relevant in exposing what they described as a ‘corrupt corporate culture’.
His lawyers pushed back against this, saying his exit was both ‘completely irrelevant’ and ’embarrassing’, the judge ordered him to answer in writing anyway.
According to The Cincinnati Enquirer, Common Pleas Court Judge Christian Jenkins ordered McMullan to explain the circumstances surrounding his resignation.
The 65-year-old, seen here in 2022, was the head of the firm since 2014 before standing down amid a probe into his personal conduct
McMullen’s departure has become a focal point in a lawsuit not related to his exit, Jewel, seen here, sued Kroger over contractual issues relating to their Wellness Festival
Jenkins wrote: ‘McMullen’s generalized allegation of embarrassment does not satisfy his burden.
‘It is plausible that this evidence could reflect on Mr. McMullen’s credibility or Kroger’s corporate culture.’
The ruling doesn’t mean that his testimony will be made public, McMullen has sought to seal his testimony which is currently under consideration, the outlet said.
The lawsuit from Jewel was filed in 2023 and claims she lost over $2 million in out-of-pocket costs and at least $5 million in profits.
It adds that this loss was a direct result of Kroger’s ‘corporate bullying mentality that led to its breach of the partnership agreement and theft of the festival’.
Kroger has filed a motion to have the lawsuit thrown out, saying that there was no enforceable contract in place.
At the time of McMullen’s exit, he alerted the board to his ‘certain personal conduct’ on February 21 and independent lawyers were drafted in to probe his behavior.
Kroger insisted the scandal ‘is not related to the company’s financial performance, operations or reporting.’
Jewel and McMullen pose for a photo during the first day of The Wellness Experience by Kroger on August 20, 2021 in Cincinnati, Ohio
McMullen was named Kroger’s CEO in 2014 and chairman in 2015. He held both positions until his dismissal
His resignation caused him to forfeit $11.2 million worth of unvested stock and options and any eligibility for a bonus for the fiscal year that ended on February 1, reported the Cincinnati Enquirer.
‘In connection with his resignation, Mr. McMullen will forfeit all unvested equity awards outstanding under the Company’s 2019 Long-Term Incentive Plan and will not be eligible to receive payment of a 2024 bonus,’ Kroger said in Securities and Exchange Commission filings.
‘Mr. McMullen will retain any equity awards that, as of the resignation date, are fully vested pursuant to their terms or for which the performance period is complete.’
The terms of his departure appear harsher than for a typical ‘voluntary termination or retirement,’ according to the newspaper.
SEC filings revealed McMullen’s total compensation from Kroger in 2023 was $15.7 million.
He was allowed to keep $14.7 million worth of stock and options that were vested as of his March 3 resignation.
However, he may have lost millions in bonus pay, as McMullen took home more than $4 million from the incentive plan in 2021 and 2022.
If he had delayed his resignation, McMullen may have been able to keep an additional $6.3 million worth of stock and options that were set to vest by March 11.
McMullen began his career with Kroger in 1978 as a part-time stock clerk and bagger at a store in Lexington, Kentucky.
He worked his way up through the company, becoming chief financial officer in 1995 and chief operating officer in 2009.
McMullen was named Kroger’s CEO in 2014 and chairman in 2015. He held both positions until his dismissal.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .