Lululemon CEO resigned in part due to romantic relationship with designer

Laurent Potdevin resigned from the top spot and from Lululemon’s board of directors

A relationship between the CEO of Lululemon Athletica Inc. and a former designer at the company is one of several instances in which the chief executive fell short of the retailer’s standards of conduct, a source familiar with the matter said Wednesday.

Laurent Potdevin resigned from the top spot and from Lululemon’s board of directors effectively immediately last Friday.

There was a range of incidents that contravened the company’s conduct code, the source said — including a years-long relationship with a designer who left the company in 2014 but continued working as a contractor later on, though the company did not renew her contract this year.

Potdevin could not be reached for comment about the workplace relationship, while Lululemon declined to respond.

The athleisure retailer said in a statement Tuesday that it “expects all employees to exemplify the highest levels of integrity and respect for one another, and (Potdevin) fell short of these standards of conduct.”

He and the company reached a separation agreement that will see the ex-CEO receive $3.35 million cash and a further $1.65 million in monthly instalments over 18 months, according to a filing with the U.S. Securities and Exchange Commission.

Potdevin agreed not to sue the company and to co-operate with it in the future, among other stipulations, in exchange.

While the retailer’s board of directors is searching for a new CEO, some shareholder advocates and analysts are calling on the company to disclose more information about the abrupt resignation. At least two U.S. law firms have launched investigations into the company.

Potdevin took over as CEO at Lululemon from Christine Day after she announced plans to leave the company. The board of directors appointed him in December 2013. He previously served as president for TOMS Shoes and CEO of Burton Snowboards.

Aleksandra Sagan, The Canadian Press


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

B.C. declares state of emergency as wildfires rage

More than 3,300 firefighters are battling more than 500 fires

Police, muni on site of break-in at pump station

Investigation being conducted but no public safety concern, officer says

Nanaimo Lakes fire a model for new satellite mapping technology

B.C.-based technology company uses Nanaimo Lakes fire to create animated map of fire progress.

Ladysmith 49ers U11 AA team mount fourth place finish at provincials

The U11 AA Ladysmith 49ers hosted the Regional Island Tournament at Holland… Continue reading

Sonic the Hedgehog movie casting call in Ladysmith next week

Film to hire 100 people as extras to play role of ‘townsfolk’

Average Canadian family spends 43% of income on taxes: study

Fraser Institute’s consumer report shows taxes accounting for larger chunk of income each year

‘Can’t erase history’ by tearing down statues, Minister says

Environment Minister Catherine McKenna spoke on the contentious removal of John A. Macdonald

Man seriously injured in Lower Mainland home explosion

Police are trying to figure out what led to a homemade explosive detonating in a Coquitlam home

Canadian soccer captain Christine Sinclair continues to lead fight against MS

Burgers to Beat MS has raised more than $11 million since its inception in 2009

VIDEO: Post-surgery monologue comedy gold

If you’ve ever had surgery with anaesthetic you know the coming out of it process can be a treat.

LETTERS: Doctors speak out on surgical wait times for B.C. patients

‘Governments know they will lose private clinic lawsuit’

Thieves steal supplies, tools and juice boxes from B.C. summer camp

‘Take a moment to think about who you stole from,’ says Burns Bog Society’s Mark Robertson

Women-owned businesses generate $68,000 less revenue than men’s: survey

When Dionne Laslo-Baker sought a bank loan to expand her burgeoning organic popsicle and freezies business in 2014, she was “shocked” by the feedback she received from one of the bankers.

Most Read