Lululemon’s CEO Steps Down Following Company Controversy
Lulumeon CEO Laurent Potdevin, whose tenure has been marked by controversy recently, stepped down yesterday. According to Glenn Murphy, executive chairman of Lululemon's board, Potdevin's resignation from the role he assumed in January 2014 came because he "fell short" on the company's standards of conduct, which includes exemplifying "the highest levels of integrity and respect for one another."
"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." —Glenn Murphy, executive chairman of the Lululemon board
"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," Murphy said in the 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."
Right now there aren't any additional details specifying how exactly Potdevin failed to meet the company's standards of conduct, but, according to The New York Times, he will still be taking a cash payment of $3.35 million and $1.65 million over the next 18 months, per his separation agreement with the company.
This news follows a recent Lululemon controversy, in which a former employee claimed the company created “the perfect environment for a sexual predator" at the store where she worked in Santa Monica, California. She said this culture led to an alleged rape by her supervisor in 2016. Furthermore, the alleged assailant was a person whom the company was already made aware of for engaging in sexually inappropriate behavior with his female subordinates.
Murphy will take over Potdevin's duties, The Wall Street Journal reports, in this interim before a new CEO is named.
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