Kohl’s Corp. has fired CEO Ashley Buchanan after just four months on the job − the latest in a series of negative developments for one of Wisconsin’s largest companies.
Buchanan was fired after he violated company policies by directing Kohl’s “to engage in vendor transactions that involved undisclosed conflicts of interest,” the Menomonee Falls-based department store operator announced on May 1.
“Mr. Buchanan’s termination is unrelated to the Company’s performance, financial reporting, results of operations and did not involve any other Company personnel,” the statement said.
Kohl’s board of directors chair Michael Bender has been named interim CEO while the company conducts a search to replace Buchanan.
With a base salary and stock options, Buchanan had a total compensation package worth more than $20 million, making him one of the highest paid Wisconsin executives.
That was significantly higher than the compensation for his predecessor, Tom Kingsbury.
Kohl’s on March 11 reported a 9.4% sales decline, and a 74.2% profit decline, during the pivotal fourth quarter of 2024 that includes the holiday shopping season.
Buchanan took over as CEO on Jan. 15.
He was the company’s third leader in four years — at a time of store closings, declining sales and a stock price had fallen by 50% since early 2024.
Before being named Kohl’s CEO, Buchanan spent four years as the leader of crafts retailer Michael’s Co. − where he struck a deal to sell the company to private equity investors.
Bender, Buchanan’s interim successor, served as president and CEO of optical retailer Eyemart Express from 2018 to 2022.
Prior to joining Eyemart Express, Bender held executive positions at Walmart Inc. He’s served as a Kohl’s director since 2019 and was named board chair in May 2024.
Bender will remain on the board but will step down from certain board committees while serving as interim CEO. A new board chair will be announced “in due course,” the company said.
“The Board has full confidence in Michael to serve our customers and associates as Interim CEO and deliver on our commitments to our shareholders,” said John Schlifske, chair of the board’s Nominating and ESG Committee, in a statement.
Kohl’s is one of Wisconsin’s largest companies, ranking 235th of companies nationwide on the 2024 Fortune 500.
It has roughly 4,000 Milwaukee-area corporate employees and thousands of other workers around the state.
This article originally appeared on Milwaukee Journal Sentinel: Kohl’s fires CEO Ashley Buchanan after finding conflicts of interest
