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Lululemon Athletica says its CEO has left the company after failing to meet its standards of conduct.
The company says in a statement that it "expects all employees to exemplify the highest levels of integrity and respect for one another and (Laurent Potdevin) fell short of these standards of conduct."
He is also no longer on the athleisure retailer's board of directors.
In a filing to the U.S. Securities and Exchange Commission, it says it will pay Potdevin $5 million over a year and a half in exchange for Potdevin agreeing not to sue, among other stipulations.
Lululemon says its board of directors has immediately begun searching for a new CEO.
The retailer also promoted Glenn Murphy to executive chairman of the board, and announced three senior officers will take on additional responsibilities and report to Murphy.
