Lululemon names Maggie Gauger president and chief product officer

Lululemon Athletica Inc. announced a management restructuring on Tuesday, appointing Maggie Gauger as president and chief product officer and Joseph Godsey as chief operating officer.

Gauger joins the company from Athleta, where she served as president and chief executive officer. Godsey joins from Walmart Canada, where he served as chief growth officer. Both appointments are effective Oct. 26.

Gauger will receive an annual base salary of $1,000,000, eligibility for an annual bonus with a target of 150% of base salary, a sign-on bonus of $1,900,000, a one-time restricted stock unit grant valued at $2,800,000 vesting over two years, and reimbursement of up to $500,000 for amounts required to be repaid to her former employer.

Godsey will receive an annual base salary of $700,000, eligibility for an annual bonus with a target of 100% of base salary, a sign-on bonus of $650,000, and a one-time restricted stock unit grant valued at $2,000,000 vesting over two years.

Nikki Neuburger, chief brand and product activation officer, and Ted Dagnese, chief supply chain officer, will depart from the company on Nov. 6. Each departure will be treated as a termination without cause under their employment agreements.

Chief Financial Officer Meghan Frank will take on expanded responsibilities, including interim oversight of the global brand and technology functions, and will receive a retention equity award. Searches are underway for a chief brand officer, a chief communications officer, a chief technology officer, and a chief strategy officer.

"Lululemon is a rare, extraordinary brand, but we have work to do to build a stronger and more competitive company," said Heidi O'Neill, chief executive officer of Lululemon.