Vancouver Sun

Con­duct of Lu­l­ule­mon’s for­mer CEO ‘fell short’

- Business · LULULEMON ATHLETICA, INC. · U.S. Securities and Exchange Commission · United States of America · Burton

ALEK­SAN­DRA SAGAN A re­la­tion­ship be­tween the CEO of Lu­l­ule­mon Ath­let­ica Inc. and a for­mer de­signer at the com­pany is one of sev­eral in­stances in which the chief ex­ec­u­tive fell short of the re­tailer’s stan­dards of con­duct, a source fa­mil­iar with the mat­ter said Wed­nes­day.

On Fri­day, Lau­rent Pot­devin re­signed from the top spot and from Lu­l­ule­mon’s board of di­rec­tors ef­fec­tive im­me­di­ately.

There was a range of in­ci­dents that con­tra­vened the com­pany’s con­duct code, the source said — in­clud­ing a years-long re­la­tion­ship with a de­signer who left the com­pany in 2014 but con­tin­ued work­ing as a con­trac­tor later on, though the com­pany did not re­new her con­tract this year.

Pot­devin could not be reached for com­ment about the work­place re­la­tion­ship. Lu­l­ule­mon re­fused to re­spond.

The ath­leisure re­tailer said in a state­ment Tues­day that it “ex­pects all em­ploy­ees to ex­em­plify the high­est lev­els of in­tegrity and re­spect for one another, and (Pot­devin) fell short of these stan­dards of con­duct.”

He and the com­pany reached a sep­a­ra­tion agree­ment that will see the for­mer CEO re­ceive $3.35 mil­lion cash and a fur­ther $1.65 mil­lion in monthly in­stal­ments over 18 months, ac­cord­ing to a fil­ing with the U.S. Se­cu­ri­ties and Ex­change Com­mis­sion.

Pot­devin agreed not to sue the com­pany and to co-op­er­ate with it in the fu­ture, among other stip­u­la­tions, in ex­change.

While the re­tailer’s board of di­rec­tors is search­ing for a new CEO, some share­holder ad­vo­cates and an­a­lysts are call­ing on the com­pany to dis­close more in­for­ma­tion about the abrupt res­ig­na­tion. At least two U.S. law firms have launched in­ves­ti­ga­tions into the com­pany.

Pot­devin took over as CEO at Lu­l­ule­mon from Chris­tine Day af­ter she an­nounced plans to leave the com­pany.

The board of di­rec­tors ap­pointed him in De­cem­ber 2013. He pre­vi­ously served as pres­i­dent for TOMS Shoes and CEO of Bur­ton Snow­boards.

 ??  ?? Lau­rent Pot­devin
Lau­rent Pot­devin

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