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Local unions call on Kroger's board to replace CEO after $7.5 billion buyback plan
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Local unions call on Kroger's board to replace CEO after $7.5 billion buyback plan
Dec 13, 2024 9:40 AM

(Reuters) - United Food and Commercial Workers local unions on Friday urged Kroger's ( KR ) board to replace CEO Rodney McMullen following the company's announcement of a $7.5 billion stock buyback plan after terminating a deal to buy Albertsons ( ACI ).

The UFCW local unions that led the "Stop the Merger coalition" argued that the "abrupt" and "massive" share repurchase program comes at a time when Kroger ( KR ) needs investments in staffing, repairs and store remodels.

Kroger ( KR ) and Albertsons ( ACI ) terminated their $25-billion merger plan on Wednesday after a U.S. judge blocked the deal. Albertsons ( ACI ) then filed a lawsuit against Kroger ( KR ), alleging a breach of contract that led to the deal's demise.

Kroger ( KR ) announced a new repurchase program later on Wednesday and said it intends to enter an accelerated share buyback program of about $5 billion of common stock.

"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.

Kroger ( KR ) did not respond to a Reuters request for comment.

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