When lululemon CEO Laurent Potdevin departed the apparel maker on Monday, it was made to look as if the departure had been voluntary as the company announced that he had resigned his position. That’s despite the company issuing a statement that said he “fell short” of the company’s conduct standards.
Now shareholder’s rights groups are demanding to know if, in fact, the termination was as described, and why was the ousted CEO given a separation payment of US$5 million and agreed not to sue the company.
One shareholders’ rights law firm in the U.S. says the company’s statements border on the inadequate and that shareholders have a right to know the reasons,.
Canaccord Genuity analyst Camilo Lyon said Tuesday that the lululemon board had moved to quarantine the fallout that could have ensued had details been made public.
I’m expecting more to come on this file.
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