Lululemon Athletica Inc. CEO and director Laurent Potdevin has resigned, effective immediately, the company said Feb. 5.
"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 athletic wear company said in a statement. Lululemon's chairman, Glenn Murphy, will take over additional duties until the company can find a new CEO.
S&P Global Market Intelligence was unable to immediately obtain an official comment from the company. A source familiar with the matter said the departure was not related to the company's financial performance or to a single event, but rather stemmed from a number of situations in which Potdevin demonstrated "a lack of leadership."
In a filing with the SEC, Lululemon said Potdevin would receive an upfront cash payment of $3.35 million in addition to $1.65 million over 18 months as part of a separation agreement. He will not receive continued or accelerated vesting of equity awards. Potdevin resigned Feb. 2, according to the filing.
Previously, Potdevin was CEO of TOMS Shoes LLC. He has been CEO of Lululemon since 2014, according to S&P Capital IQ data.
The Wall Street Journal reported that there were a "range of instances" where Potdevin did not align with company policy on leadership and conduct, citing a person familiar with the matter.
Three Lululemon executives will also take on increased responsibility and will report to Murphy. Celeste Burgoyne, executive vice president of retail in the Americas, will oversee brand-facing aspects of the global business, including stores and e-commerce. Stuart Haselden, CFO and COO, will have full responsibility for all operations related to finance, supply chain, employees and technology. Sun Choe, senior vice president of merchandising, will run all of product development, design, innovation and merchandising.
S&P Capital IQ and S&P Global Market Intelligence are owned by S&P Global Inc.
