Lululemon Athletica Inc. CEO Laurent Potdevin’s resignation comes after a relationship with a designer at the company, says a source familiar with the matter.
The company announced Tuesday that their chief executive left effective immediately after falling short of the company’s standards of conduct, which ask “all employees to exemplify the highest levels of integrity and respect for one another.”
The source says the years-long relationship with the female designer is one of several incidents of the conduct in question.
According to documents filed with the U.S. Securities and Exchange Commission, the company and Potdevin reached a separation agreement in connection with his resignation.
BUSINESS REPORT: Questions continue over the departure of Lululemon CEO
Potdevin will receive a total $5 million from the company over a year and a half in exchange for agreeing not to sue the company and following other stipulations.
The athleisure retailer’s board of directors is searching for a new CEO.