Business leaders respond to the scandal involving a CEO's firing.
Ashley Buchanan has been fired as the CEO of Kohl’s just months into his tenure, due to a romantic conflict of interest involving a significant vendor contract with his partner, Chandra Holt. This incident has raised eyebrows and prompted an internal investigation leading to Buchanan’s termination. Holt also faced repercussions, losing her advisory role at BCG. The situation underscores serious concerns about governance and conflict of interest in corporate structures.
On a surprising Thursday, Ashley Buchanan was fired from his role as CEO of Kohl’s, just months into his tenure that began in January 2023. The ousting was primarily due to a romantic conflict of interest involving a “highly unusual multimillion-dollar contract” with Chandra Holt, his romantic partner.
Chandra Holt, who is 44 years old, is the founder of a coffee startup called IncrediBrew. Notably, only days before the scandal erupted, Buchanan shared a LinkedIn video featuring Holt in which she discussed the benefits of her collagen-infused coffee. This post raised eyebrows when Buchanan failed to remove it even as news of his impending dismissal started to circulate.
Following an internal investigation, Kohl’s board discovered that Buchanan violated company policies by failing to disclose his relationship with Holt while pushing for vendor transactions with her company. As a result, the board terminated Buchanan’s employment “for cause,” which means that he will forfeit all equity awards and bonuses earned during his time at Kohl’s. In addition, he is required to reimburse a $2.5 million signing bonus on a pro-rated basis.
Chandra Holt wasn’t spared from the fallout either. She was also fired from her advisory position at the Boston Consulting Group (BCG), which had a working contract with Kohl’s. BCG expressed their shock at learning about the personal relationship between Holt and Buchanan and stated their commitment to strict guidelines for conflict of interest disclosures.
The duo’s relationship isn’t a new one; they have a history together from their time at Walmart, where they both held significant roles. Noteworthy is that they have been living together in an upscale Dallas golf community, a detail that adds another layer to this unfolding drama. Holt had made a brief stint as CEO of Conn’s HomePlus, a position that ended with the company going bankrupt, before she joined BCG.
As if the controversy couldn’t get more complicated, legal experts have started to weigh in on potential repercussions for Buchanan. He may face serious legal challenges for not disclosing these conflict of interest situations, which could even be in violation of the Sarbanes-Oxley Act. This Act is designed to protect shareholders’ interests and is taken very seriously in corporate governance.
Kohl’s was quick to clarify that Buchanan’s firing had nothing to do with the company’s overall performance or any related issues among other employees. Nevertheless, the scandal raises questions about governance practices and ethical responsibilities at major corporations. The consulting agreement tied to Buchanan remains unnamed in Kohl’s regulatory filings, although it has been linked to BCG.
With such a dramatic turn of events, it’s unclear what the future holds for both Buchanan and Holt. Their professional and personal lives have become intertwined in a way that could have lasting implications. Whether or not additional consequences will emerge remains to be seen, but one thing is certain: this is a high-stakes affair that has rattled the corporate world.
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