Kroger Company ( KR ) shares are trading lower in the premarket session on Tuesday.

In a recent exchange filing, the company said Ronald Sargent, the company’s interim Chief Executive Officer and Chairman of the Board, will receive an annual base salary of $4.35 million annualized for the duration of his service and a grant of 60,515 shares of restricted stock, which will vest one year from the date of the award.

Last month, the company announced the resignation of CEO Rodney McMullen.

McMullen resigned from Kroger ( KR ) following an investigation of personal conduct by the board. Kroger ( KR ) said it was made aware of a certain personal conduct on Feb. 21, which was immediately investigated.

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USA Today reports that Kroger’s leadership change comes amid several challenges, including fallout from its failed Albertsons merger and a lawsuit over regulatory issues, a lawsuit from C&S Wholesale Foods regarding a planned store sale, inflation affecting consumer spending and 2024 sales, and trade disputes, particularly with Mexico and Canada, which could lead to higher grocery prices.

In March, the company reported fourth-quarter adjusted earnings per share of $1.14, beating the street view of $1.11. Quarterly sales of $34.308 billion missed the analyst consensus estimate of $34.509 billion.

“Kroger is operating from a position of strength, delivering fourth quarter results that came in ahead of expectations due to the strength of our model and the disciplined execution of our teams,” said Sargent.

Price Action: KR stock is down 0.75% at $67.18 premarket at last check Tuesday.

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