Kohl’s stock price is up almost 10% after CEO Ashley Buchanan was fired for unethical behavior

Shares of Kohl’s Corporation (NYSE: KSS) were up nearly 10% on Thursday after the company fired CEO Ashley Buchanan after just four months on the job. It appointed board chair Michael Bender as interim chief executive officer effective immediately.

Buchanan’s termination comes after an investigation by the Kohl’s board found he violated the company’s code of conduct twice, and was involved in undisclosed conflicts of interest stemming from a personal relationship with a vendor, according to The Wall Street Journal.

“Buchanan’s termination is unrelated to the company’s performance, financial reporting, results of operations, and did not involve any other company personnel,” Kohl’s explained in a statement.

The former CEO had a total compensation package worth more than $20 million, according to USA Today.

Bender and other company executives held an all-hands meeting on Thursday to address the changes and reassure staff, the WSJ reported. Bender’s appointment as interim CEO makes him the fourth CEO in three years to head the struggling retailer, which continues to face declining sales.

In connection with the leadership announcement on Thursday, Kohl’s provided preliminary expectations for its first-quarter financial results, forecasting sales would likely be down around 4%. It will report those earnings at the end of the month, on May 29, at 9 a.m.

Like many retailers, Kohl’s has been struggling with declining sales and decreasing foot traffic, as consumers spend less money due to the skyrocketing cost of living, and spend less time shopping in stores versus online.