Kohl's Corporation (KSS) saw its stock price plummet by 5.10% in Friday's trading session, following revelations of internal conflicts within the company's board. The sharp decline came after the retailer disclosed that Christine Day, a former director, had resigned due to disagreements with the board, contradicting an earlier statement that downplayed any conflicts.

According to a SEC filing, Day sent emails on May 8 and 9, expressing her disagreements with the board. The dispute primarily centered on how the company responded to recommendations from Institutional Shareholder Services (ISS), a prominent shareholder advisory firm, regarding the say-on-pay proposal and board process matters. In an email to the board, Day stated, "There is simply no way the Board could have interpreted my resignation as having no conflict issues. This was a deliberately selective edit."

The revelation of this internal discord and the company's initial misrepresentation of Day's departure have raised concerns among investors about Kohl's corporate governance practices. The retailer attempted to distance itself from Day's claims, stating that it "strongly disagrees with the assertions in Ms. Day's emails." However, the market's reaction suggests that investors are wary of the potential implications of this board-level conflict on the company's decision-making and overall performance. As Kohl's faces these governance challenges, the stock's significant drop reflects growing uncertainty about the company's leadership and strategic direction.