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The New York Times reports that Lululemon Athletica CEO Laurent Potdevin has “resigned because of behavior that fell short of the athletic apparel maker’s standards of conduct.”

According to the story, “The company said Mr. Potdevin, 50, had failed to ‘exemplify the highest levels of integrity and respect for one another,’ but declined to give specific examples.”

Executive chairman Glenn Murphy released a statement saying that “culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization.” He also thanked Potdevin for “his work strengthening the company and positioning it for the future.”

The story goes on:

“After The New York Times and other news outlets published allegations of sexual harassment and assault against the movie mogul Harvey Weinstein, other claims of workplace misconduct have cost executives in fashion, media, politics and other industries their jobs. Lululemon declined to say whether sexual misconduct was behind Mr. Potdevin’s resignation.

“In a separation agreement dated Friday and filed with regulators, Lululemon said it would give Mr. Potdevin an upfront cash payment of $3.35 million, followed by $1.65 million spread over 18 months.”
KC's View:
Pretty good bet that this guy won’t be the last. I’ve said here from the beginning that while high-profile people like Weinstein were in the initial headlines, it would not take long for the reckoning to be felt in the business world.

I have to wonder if they’ll be able to keep a lid on the reasons behind his resignation for very long. I think not. Eventually, this stuff becomes public, and the company may end up looking bad for a) letting him resign, b) paying him millions in severance, and c) trying to cover it up.