Unsatisfied with the frequent failures of the board's strategy, Lululemon (LULU.US) founder launched a proxy battle.

Lululemon Athletica (LULU.US) founder Chip Wilson announced on Monday that he has launched a proxy battle by nominating three independent directors to join the company's board of directors. Just over two weeks ago, the apparel manufacturer announced the departure of CEO Calvin McDonald, but a successor has not yet been determined. Lululemon's stock price has dropped nearly half this year as the company struggles to attract support from young affluent consumers while facing intense competition from rapidly growing emerging competitors such as Alo Yoga and Vuori, as well as pressure from activist investor Elliott Management. Wilson has nominated three director candidates to join the Lululemon board, including former co-CEO of On Running Marc Maurer, former ESPN Chief Marketing Officer Laura Gentile, and former CEO of Activision Blizzard Eric Hirshberg. During the search for a formal successor, the board has appointed CFO Meghan Frank and Chief Business Officer Andr Maestrini as interim co-CEOs. Earlier reports stated that Elliott Management, which disclosed holding $1 billion worth of Lululemon shares earlier this month, has been working closely with former Ralph Lauren Corporation executive Jane Nielsen for several months to discuss the possibility of her becoming CEO. When asked if Wilson was working with activist investor Elliott Management to push for a board reshuffle, a source familiar with Wilson's thinking stated that he was not collaborating with any other investors. The source added that Elliott's activity in seeking a new CEO would not affect Wilson's plans. Sources have revealed that Wilson has spoken with Nielsen, but any CEO chosen by the company before the board overhaul would not have Wilson's support. In a statement, Wilson said, "The recent CEO transition announced is the third complete failure under the board's oversight with no clear succession plan in place. Shareholders do not have confidence that this board, without richer product experience, can select and support the next CEO." Lululemon stated that its board will evaluate Wilson's nominated director candidates at the appropriate time according to the board governance process and has initiated a comprehensive CEO search. The board will review and consider Wilson's nominations and formally propose recommendations in advance of the company's 2026 annual shareholder meeting. Morningstar analyst David Swartz said, "Adding three new board members seems like a willingness from Lululemon. At least, it can prevent Wilson from continuously attacking the board. The nominees look good, although only one of the three (Maurer) has direct experience in Lululemon's industry." Wilson may not be vying for a board seat himself as he holds a significant stake in Lululemon's competitor AS US. Origins of Wilson's relationship with Lululemon According to LSEG's data, as of December 2025, Wilson is one of the largest independent shareholders of Lululemon, holding 4.27% of the shares. The founder of the yoga apparel manufacturer had previously called for an urgent search for a CEO to succeed McDonald and for a group of independent directors with a deep understanding of the company to lead and restore the company's "product-first" philosophy. This is not Wilson's first time pushing for changes to the Lululemon board. After founding the clothing company in 1998, Wilson stepped back from day-to-day operations in 2012 and resigned as chairman a year later over the overly "transparent" yoga pants recall incident due to quality issues. The incident sparked a public relations storm, leading to the resignation of several executives. In 2015, due to conflicts with the board on strategic issues, he also resigned from the board. However, a proxy battle was avoided after Wilson agreed to sell about half of his 27% stake to private equity firm Advent International for $845 million in exchange for two additional board seats.