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Kohl's fires CEO Ashley Buchanan citing conflict of interest
ByAinvest
Friday, May 2, 2025 5:18 pm ET1min read
Kohl's fires CEO Ashley Buchanan citing conflict of interest
Kohl's Corporation has terminated its CEO, Ashley Buchanan, following an investigation that revealed violations of the company's conflict-of-interest policies. Buchanan, who had been appointed to the position in January 2025, was fired after just four months in office.The investigation, conducted by an external law firm, found that Buchanan had directed the company to engage in transactions with a vendor who had a personal relationship with him. This relationship was not disclosed as required by Kohl's code of ethics. Buchanan's actions led to the company entering into a multi-million-dollar consulting agreement with terms deemed favorable to the vendor.
Buchanan's termination will require him to forfeit his equity awards and repay a pro-rated portion of his $2.5 million signing bonus to the company. Michael Bender, the company's board chair, has been appointed as interim CEO.
Kohl's shares rose by 7.5% to $7.20 in late morning trading following the announcement of Buchanan's termination. The company's financial performance was not affected by the CEO's actions, as preliminary results for the first quarter showed a comparable sales decrease of between 4% and 4.3%.
Buchanan's tenure at Kohl's was brief and marked by controversy. Prior to joining Kohl's, he served as CEO of Michaels Companies and held various executive roles at Walmart and Sam's Club. His dismissal comes amidst the retailer's ongoing challenges, including declining sales and competition from retailers like Walmart and Amazon.
References:
[1] https://www.cbsnews.com/news/kohls-ceo-ashley-buchanan-fired-investigation-vendor-policy/
[2] https://fortune.com/article/kohls-fires-ceo-ashley-buchanan-ethics-conflict-interest-unusual-vendor-relationship/
[3] https://economictimes.indiatimes.com/news/international/us/why-was-kohls-ceo-ashley-buchanan-fired-after-just-four-months-the-story-is-interesting-and-it-involves-his-lover/articleshow/120826287.cms
[4] https://nypost.com/2025/05/01/business/kohls-fires-new-ceo-ashley-buchanan-after-probe-finds-he-violated-conflict-of-interest-policies/
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