Kohl’s Corporation announced Thursday that its CEO, Ashley Buchanan, has been terminated “for cause” following an investigation into allegations of a conflict of interest. The company will appoint board chair Michael Bender as interim CEO until a permanent leader is found.
According to the Securities and Exchange Commission filing, an investigation revealed that Buchanan directed Kohl’s to enter a multi-million dollar agreement with a consulting group that included a personal contact. This individual, who is allegedly Buchanan’s romantic partner, had ties to the vendor, which led to “highly unusual” and “favorable” terms.
The board of directors deemed Buchanan’s behavior as grounds for removal, stating it was unrelated to the company’s performance or financial reporting. The termination decision came after a recent decline in the company’s stock value, with shares losing roughly half their worth this year.
As part of the transition, Bender will lead the search process for a permanent CEO and remain on the board. In a statement, Bender expressed confidence in Kohl’s strong foundation of over 1,100 stores serving 60 million customers, vowing to enhance the value delivered to customers and drive meaningful operational and financial progress.
Source: https://www.investopedia.com/kohl-s-stock-rises-after-board-fires-ceo-ashley-buchanan-for-cause-update-11725564