Lululemon Athletic announced Monday its CEO was resigning because his behavior fell short of the company’s standards of conduct.
Laurent Potdevin, who is also stepping down from the company’s board, will receive an immediate payout of $3.35 million, with an additional $1.65 million over the course of 18 months, according to a separation agreement.
The company did not specify how Potdevin’s conduct was inadequate, saying only that it expects all employees to “exemplify the highest levels of integrity and respect for one another.”
Chairman Glenn Murphy thanked Potdevin for his work and said, "Culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization. Protecting the organization's culture is one of the board's most important duties."
Analyst Neil Saunders, managing director of GlobalData Retail, called on the company to be clearer about the reasons for Potdevin's departure and said failing to do so would cause speculation that would "ultimately harm the brand."
Laurent Potdevin’s resignation after four years is effective immediately, as Lululemon embarks on a search for his replacement.
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Potdevin worked for Toms Shoes and Burton Snowboards before he joined Lululemon while the company was floundering in 2014.
Lululemon, which popularized the athleisure trend and became wildly popular for its leggings, was forced to recall thousands of yoga pants in 2013 after customers complained they were too sheer.
Founder Chip Wilson then sparked outrage by blaming women’s bodies, saying, “Quite frankly, some women’s bodies just actually don’t work” for pants.
Stocks tumbled, and the company lost $67 million — or a third of its market value — in the midst of the sheer legging debacle.
Potdevin took the helm in January 2014, and managed the steer the company to continued success while other athletic brands reported slowing growth.
Lululemon shares, which had fallen 1.5% during regular trading as U.S. stocks slumped overall, dropped another 3% after the announcement.
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Laurent Potdevin, who is also stepping down from the company’s board, will receive an immediate payout of $3.35 million, with an additional $1.65 million over the course of 18 months, according to a separation agreement.
The company did not specify how Potdevin’s conduct was inadequate, saying only that it expects all employees to “exemplify the highest levels of integrity and respect for one another.”
Chairman Glenn Murphy thanked Potdevin for his work and said, "Culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization. Protecting the organization's culture is one of the board's most important duties."
Analyst Neil Saunders, managing director of GlobalData Retail, called on the company to be clearer about the reasons for Potdevin's departure and said failing to do so would cause speculation that would "ultimately harm the brand."
Laurent Potdevin’s resignation after four years is effective immediately, as Lululemon embarks on a search for his replacement.
Driver accused of killing Colts' Edwin Jackson is in the U.S. illegally, has been deported twice: police
Potdevin worked for Toms Shoes and Burton Snowboards before he joined Lululemon while the company was floundering in 2014.
Lululemon, which popularized the athleisure trend and became wildly popular for its leggings, was forced to recall thousands of yoga pants in 2013 after customers complained they were too sheer.
Founder Chip Wilson then sparked outrage by blaming women’s bodies, saying, “Quite frankly, some women’s bodies just actually don’t work” for pants.
Stocks tumbled, and the company lost $67 million — or a third of its market value — in the midst of the sheer legging debacle.
Potdevin took the helm in January 2014, and managed the steer the company to continued success while other athletic brands reported slowing growth.
Lululemon shares, which had fallen 1.5% during regular trading as U.S. stocks slumped overall, dropped another 3% after the announcement.
read more
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