Kohl’s Appoints New CEO with $22M Package

- The new CEO, Michael J. Bender, previously served as President and CEO of optical retailer Eyemart Express, and has held senior leadership roles at Walmart, Cardinal Health, and Victoria's Secret. His appointment makes him one of the few Black CEOs currently leading a Fortune 500 company. - Bender's compensation package includes an annual base salary of $1,475,000, an annual incentive target of 175% of his base salary, and a long-term incentive target of at least $9,500,000. - The leadership change follows the termination of the previous CEO, Ashley Buchanan, after just four months. An investigation found that Buchanan had violated company policies by directing business to a vendor with whom he had an undisclosed personal relationship. - This appointment makes Bender the third CEO in three years for Kohl's, a period marked by significant leadership instability. - Activist investors, including Macellum Advisors and Ancora Holdings, have been pressuring Kohl's to improve performance. Their demands have included board changes, selling off real estate, and even a full sale of the company. - Kohl's has been implementing a turnaround strategy that includes a partnership with Sephora, projected to exceed $2 billion in annual sales by 2025, and expanding its athleisure assortment. - Recent strategic initiatives also include the introduction of "the Deal Bar" in all stores, a section featuring items priced at $10 or less to attract price-conscious shoppers. - The company has faced financial headwinds, with a reported 2.8% year-over-year decline in net sales in the third quarter of 2025. Management has noted that low-to-middle-income consumers are showing more cautious discretionary spending.