Lululemon's founder sold $112 million worth of stock in the month before CEO Christine Day left the company, say regulatory documents filed with the U.S. Securities and Exchange Commission (SEC).
Chip Wilson dumped 607,545 shares worth $81.50 each last Friday, earning himself $49.5 million U.S., but three more trades since May 21 made him another $62.5 million U.S., The Vancouver Sun reported.
The shares were sold under a plan established last December, under which the SEC which allows executives to trade stocks, even if they have private information, Reuters reported.
The sales plan, which is handled by U.S. bank Merrill Lynch, has been ongoing since May, The Globe and Mail reports.
Wilson sold around two million of his shares between May 10 and June 7 at an average price of $81.57. His assistant told the Globe that Merrill Lynch handled the transactions and the Lululemon founder had no control over the trades.
Lululemon stock dropped nearly 17 per cent after Day announced her departure. Investors are being advised to wait until the company has a new CEO and team in place before dumping their shares.