Here's the company culture incoming Lululemon CEO Calvin McDonald is inheriting

6 months ago by Joshua Fruhlinger in Facts

We've discussed Lululemon's ($NASDAQ:LULU) successes despite its punches and bruises along the way, from a see-thru pants scandal to a CEO accused of inappropriate relations with employees.

In the former case, founding CEO Chip Wilson handled the situation poorly, saying some women simply don't belong in Lululemon. He resigned a year later.

In the latter case, Potdevin resigned for not meeting "standards of conduct" after his behavior became an issue.

Now that Lululemon has name its new CEO in Sephora CEO Calvin McDonald, here's what he's stepping into when it comes to workplace culture and how employees feel about the company.

As you can see, employee-based CEO ratings at Lululemon took a dive after allegations about Potdevin's misconduct surfaced. Just a year ago, Potdevin's rating was an enviable 91% — the average CEO rating on Glassdoor is 65%. Today, the average rating has sunk to just 74%.

The good news for McDonald is that Glassdoor typically resets a company's CEO rating once the encumbent has taken office, so Potdevin's 74% will magically disappear sometime next month.

What cannot be reset, however, is Glassdoor's overall company rating.

In this case, however, McDonald is in a pretty good spot. Overall company rating by employees has altered been a 4.1 and 4.2 out of 5 stars: not bad for a company that's been through so much.

That's likely because Lululemon continues to excel where it matters most: sales and market expansion. The company's stock has grown by 80% in just the last year, and Lululemon's retail footprint is impressive, with stores around the world.

In fact, Lululemon employees love their place of work so much that 84% would recommend it to others.

McDonald will certainly have his work cut out for him once he starts on August 20. But if Glassdoor employee review trends can tell him anything, he'll have a workforce that's ready to get to work and follow his lead, wherever it may take them.

Joshua Fruhlinger

Joshua has been writing about technology, lifestyle, and business for over 20 years. He's one of the original writers and editors for Engadget, and still writes a...

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