Bounced Kohl’s CEO must repay multi-million dollar signing bonus

MENOMONEE FALLS, WIS. – Kohl’s recently ousted CEO, Ashley Buchanan, is facing a financial penalty after being let go for cause on April 30.

In accordance with the terms of his contract, Buchanan must reimburse the company a pro rata portion of the $2.5 million signing incentive he received when he officially joined the company on Jan. 15. He must also forfeit all equity awards he received from Kohl’s.

Buchanan’s contract was terminated after an investigation conducted by outside counsel determined he had violated company policies by directing Kohl’s to engage in vendor transactions that involved undisclosed conflicts of interest, the company reported.

In an SEC filing on May 1, Kohl’s said Buchanan had directed the company to do business with someone with whom he has a personal relationship, adding that the terms were “highly unusual” and “favorable to the vendor.” Buchanan also authorized a multi-million dollar consulting agreement with an entity whose team included the same individual. In neither case did he disclose to the company the nature of the relationship, Kohl’s said.

The Wall Street Journal has identified the individual as Chandra Holt, describing her as Buchanan’s romantic partner. The two reportedly met when they both worked for Walmart. Beyond Inc. hired Holt last year to serve as CEO of the Bed Bath & Beyond business. She was let go after four months as Beyond reworked its leadership organization.

Kohl’s stated that Buchanan’s ouster is unrelated to Kohl’s performance, financial reporting and results of operations and did not involve any other company personnel.

See also:

• Beyond cuts loose senior exec as it shuffles leadership