Lululemon says Laurent Potdevin has resigned as CEO, saying he “fell short” of the company’s standards of conduct.
“Lululemon expects all employees to exemplify the highest levels of integrity and respect for one another, and Mr. Potdevin fell short of these standards of conduct,” the Vancouver-based athletic wear company said in a statement.
Potdevin was appointed CEO in Dec. 2013.
Globalnews.ca coverage of Lululemon
“Culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization,” Glenn Murphy, Lululemon’s executive chairman of the board, said. “Protecting the organization’s culture is one of the board’s most important duties.”
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Murphy, along with three Lululemon senior executives, will take on additional responsibilities with the company following Potdevin’s departure.
Potdevin will receive $5 million from Lululemon, according to an SEC filing.
The company says it is also initiating a search for a new global CEO.
Shares in Lululemon fell more than 3 per cent after the announcement.
The announcement is vague and damaging, Neil Saunders, managing director of GlobalData Retail, wrote in a note.
Lululemon owes investors and customers clarity over why Potdevin was made to depart, he said.
“Failure to do so will likely lead to speculation which could ultimately harm the brand,” wrote Saunders.
— With the files from The Associated Press and The Canadian Press
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