The former CEO of Lululemon Athletica abruptly resigned after falling short of the company’s conduct standards, in particular because of a years-long relationship with a former designer, a source told The Canadian Press.
Laurent Potdevin quit as chief executive and stepped down from the board of directors, effective immediately, last week.
In a statement, the retailer said 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".
Potdevin and Lululemon’s separation agreement would see the former receive $3.35 million cash and a further $1.65 million in monthly instalments over 18 months, according to a filing with the US Securities and Exchange Commission.
In exchange, Potdevin will not sue the company and will co-operate with it in the future. At least two law firms have launched investigations into the company, which produces athletic gear.
Potdevin was appointed CEO by the board of directors in December 2013. Neither he nor Lululemon declined to respond to interview requests.
Shareholder advocates and analysts want more information on the abrupt resignation.
Should you hire a friend or relative?
CEO quits over major data breach