Shares of arts and crafts retailer Michaels were on the move on Monday, gaining over 30% on news that the company has hired a Walmart executive as its new CEO.
The company announced that Walmart executive Ashley Buchanan will become the company’s CEO in 2020. Buchanan will be succeeding Mark Cosby, who will enter a transition period and will continue to serve as the chief executive until early April. Cosby was president of Office Depot’s North America business.
Buchanan has been the chief merchandising officer for Walmart’s U.S. e-commerce business.
He will become president and designated CEO of Michaels starting on Jan. 6, while Cosby will stay on through April 1 to help with the transition, the company said. Cosby will remain on the board afterward.
Buchanan will receive an annual base salary of $1.2 million and a signing bonus of almost $3.7 million that vests over two years, Michaels wrote in an SEC filing.
“It has been an honor to lead Michaels and to help the company clearly define its core customer and develop a strategy centered on the Makers,” Cosby said in a press release.
“I am excited to welcome Ashley as his impressive skills and extensive experience make him uniquely suited to lead Michaels into its long and bright future,” Cosby also said. “He brings innovative thinking and a wealth of merchandising and digital expertise that will help us engage our Makers and deliver unique crafting experiences.”
Shares of Michaels are still down more than 40% year to date.
Disclaimer: We have no position in Michaels Companies Inc. (NASDAQ: MIK) and have not been compensated for this article.