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

Kettle Valley Steam Railway holds train ride of terror

Summerland tourist train will have Halloween-themed events

Penticton Vees alumni has NHL jersey retired by Anaheim Ducks

Paul Kariya played with the Penticton Vees from 1990-1992

Ballet Kelowna to kick off 16th season with pair of premiers

Fresh off performances in Beijing and Toronto, company will perform at KCT Nov. 16 and 17

Man charged with attempted murder in Oliver back in court

Andrew Bradley Miller pleaded guilty to charges of resisting arrest and failure to appear in court

Bittersweet ending for Penticton soccer player with UBC-O Heat

Bret Depner was honoured at his last UBC-Okanagan Heat soccer game

B.C. sailor surprised by humpback whale playing under her boat

Jodi Klahm-Kozicki said the experience was ‘magical’ near Denman Island

Ovechkin has 4 points as Caps rough up Canucks 5-2

WATCH: Defending champs pick up impressive win in Vancouver

World Junior Hockey fever hits Vernon

Vipers spice up floor ball demonstration at OK Landing School

Shuswap refugee family settles into new, more hopeful life

Father of 10th Syrian family to come to Salmon Arm says learning English, work, top priorities

RCMP seek missing Vernon man

Michael Ramsey, 49, was last seen Oct. 21

B.C. government moves to tighten resource industry regulations

New superintendent will oversee engineers, biologists, foresters

Election watchdog seeks digitally savvy specialists to zero in on threats

Move follows troublesome evidence of online Russian interference in the 2016 U.S. election

Most Read