Oh Lululemon executives, you are such an embarrassment to the brand. It’s a crying shame. Lululemon is being sued by a pension fund shareholder (firefighter and police) over the executive bonus structure increase that happened immediately before, or immediately following the sheer pants recall. Executive increased their bonus structure up to 200% of their base income (which if you look at their incomes, that is a disgustingly large figure) based on hitting performance targets. The fund asserts that the bonus hike represents a breach of the boards obligations to the company and it’s shareholders, because the board was aware of the problem that lead to the recall. According to the complaint, Lululemon’s compensation committee approved an amendment to the company’s executive bonus plan on March 13 – after the company was aware of the problem with the Luon pants, but before it pulled them from stores. Shady, shady I tell ya! The board appears “to have violated it’s fiduciary obligations and damaged the company and it’s shareholders“.
Did you know you can get my outfit details right here? Just click on the image you want the details for and it will show you all the items.