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

Gardening event in Ucluelet this weekend

Feb. 25 event include deer-proofing tips.

Tofino and Ucluelet cheer new Airbnb tax agreement

“This is a good and necessary step for the government to take.”

Food Bank on the Edge Society seeks safer location

Facility serves Ucluelet, Tofino and surrounding communities.

Foot found near Victoria belonged to missing Washington man

No foul play suspected in death of Stanley Okumoto, 79

Greyhound cleared to end routes in northern B.C., Vancouver Island

Company says nine routes have dropped 30% in ridership in last five years

Pilot program trains next generation of Island farmers

Parksville’s GoodSeeds introduces youth 17-30 years to agricultural careers

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Indigenous elders share history with Ladysmith students

‘Our kids learning their history through elders is nothing that we can find in our textbooks’

It’s quietly business as usual for the E&N

Waiting game continues in quest for direction on service ceased since 2011

Three new judges appointed to B.C. Supreme Court

Two spots filled in Vancouver, one in New Westminster

BCHL Today: Merritt’s Buckley nets scholarship and Vees slam Salmon Arm

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Pilot program trains next generation of Island farmers

Parksville’s GoodSeeds introduces youth 17-30 years to agricultural careers

Trial date delayed in case of slain Victoria sisters

Andrew Berry’s next court appearance will be in three weeks to set a date for trial to begin

B.C. MP invites convicted terrorist to Trudeau reception in India

Jaspal Atwal was convicted of trying to assassinate an Indian cabinet minister

Most Read