Kohl's Corp. has made headlines once again as they fired CEO Ashley Buchanan after just four months in the position. This decision marks yet another chapter in the challenging saga of one of Wisconsin's largest companies. The termination was officially announced on May 1, citing violations of company policies that involved undisclosed conflicts of interest. Notably, Buchanan's dismissal is reported to be unrelated to the company's financial performance, raising questions about the decision-making processes within the leadership.
According to the announcement from Kohl's, Buchanan's termination stemmed from his direction for the company to engage in vendor transactions that breached established policies. The board clarified that his firing did not involve any other personnel and was strictly a matter of policy violation. This situation underscores the importance of adherence to corporate governance standards, particularly in large organizations like Kohl's.
Following Buchanan's departure, Board Chair Michael Bender has stepped in as interim CEO while the search for a permanent replacement begins. Bender is expected to maintain stability within the organization during this transitional period. He has a strong background in retail, having previously served as the president and CEO of Eyemart Express from 2018 to 2022 and holding various executive roles at Walmart Inc. Bender has been a member of Kohl's board since 2019, becoming board chair in May 2024.
During his brief tenure, Ashley Buchanan received a total compensation package exceeding $20 million, positioning him among the highest-paid executives in Wisconsin. This amount notably surpassed the compensation of his predecessor, Tom Kingsbury. Despite this lucrative salary, the company faced significant challenges, reporting a 9.4% decline in sales and a staggering 74.2% drop in profits during the crucial fourth quarter of 2024, which includes the holiday shopping season. These financial difficulties raised concerns about the effectiveness of leadership strategies and operational decisions.
Buchanan took over as CEO on January 15, 2024, becoming the third leader in just four years amid a backdrop of store closures and a 50% drop in the company's stock price since early 2024. His prior experience includes a successful four-year tenure at Michael’s Co., where he negotiated a sale to private equity investors. His track record in retail raised initial hopes for a turnaround at Kohl's, but the subsequent results have led to significant scrutiny.
As Kohl's navigates this leadership transition, the company is expected to announce a new board chair in the near future. John Schlifske, chair of the board's Nominating and ESG Committee, expressed confidence in Bender’s ability to lead during this period. “The Board has full confidence in Michael to serve our customers and associates as Interim CEO and deliver on our commitments to our shareholders,” Schlifske stated.
Kohl's remains a critical player in Wisconsin's economy, ranking 235th on the 2024 Fortune 500 list and employing around 4,000 corporate staff in the Milwaukee area, alongside thousands more throughout the state. The company’s next steps will be closely watched by investors and consumers alike as they seek to stabilize and improve performance in an increasingly challenging retail landscape.
