Lululemon CEO Laurent Potdevin abruptly resigned on Monday, with the retailer explaining in an announcement that it “expects all employees to exemplify the highest levels of integrity and respect for one another,” and that Potdevin “fell short” of those standards.
“While this was a difficult and considered decision, the Board thanks Laurent for his work in strengthening the company and positioning it for the future,” Glenn Murphy, Executive Chairman of the Board, said in a statement. “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.”
Though Lululemon did not elaborate on the terms of Potdevin’s departure, a source close to the matter told the Wall Street Journal that Potdevin had acted out of keeping with the company’s interests in “a range of instances.”
Nevertheless, he’s still getting an upfront cash payment of $3.35 million, as well as $1.65 million over 18 months as part of his separation agreement. How nice for him.