Kohl's ousted its CEO, Ashley Buchanan, on April 30 after discovering he engaged in inappropriate business transactions with a personal acquaintance, as revealed in a filing with the Securities and Exchange Commission.
The investigation concluded that Buchanan instructed the company to enter into business with a vendor linked to an individual with whom he had a personal relationship, leading to his termination as CEO.
Reports suggest the individual involved was Chandra Holt, identified as Buchanan's romantic partner. Holt's contract with Boston Consulting Group was also terminated due to the incident.
Michael Bender, chair of Kohl's board of directors, has been appointed as interim CEO while the company searches for a replacement for Buchanan.
The company disclosed that Buchanan orchestrated a significant consulting agreement with a firm that employed the individual with whom he had a personal relationship, breaching ethics policies by failing to disclose this connection.
Following the scandal, Holt was also let go from her role at Boston Consulting Group, which emphasized the importance of disclosing conflicts of interest for senior advisors.
Buchanan, who previously led Michael's and worked for Walmart and Sam's Club, received over $20 million in compensation during his time at Kohl's.
Kohl's expressed confidence in Bender's ability to serve as interim CEO and fulfill obligations to customers, employees, and shareholders during this transition period.
Contributing: Genevieve Redsten, Milwaukee Journal Sentinel
Melina Khan is a trending reporter covering national news for USA TODAY. She can be reached at MKhan@gannett.com.