Kohl’s Corporation has terminated CEO Ashley Buchanan after just over three months in the role, citing serious ethical violations related to undisclosed conflicts of interest.
An internal investigation, conducted by external counsel and overseen by the board’s audit committee, found that Buchanan directed Kohl’s to engage in business with Incredibrew, a vendor founded by Chandra Holt, with whom he had a personal relationship. The deal provided unusually favorable terms to the vendor and was not disclosed to the board, violating the company’s code of ethics. Buchanan also arranged a multimillion-dollar consulting agreement involving Holt without disclosing the relationship.
As a result, Buchanan has been dismissed “for cause,” forfeiting all equity awards and required to repay a portion of his $2.5 million signing bonus.
In response to the leadership change, Kohl’s appointed board chairman Michael Bender as interim CEO while initiating a search for a permanent replacement.
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