Lululemon ends proxy battle with founder; agrees to two of his board nominees
Lululemon has ended its feud with founder Chip Wilson.
The athletic apparel retailer entered into an agreement with Wilson — who is also one of the company’s biggest shareholders — under which it agreed to appoint two of Wilson’s board nominees, and an additional director with “product and brand expertise in apparel” by October. In exchange, Wilson, among other things, has agreed not to criticize the company publicly or privately for about a year and a half.
The two nominees — Laura Gentile, former chief marketing officer of ESPN, and Marc Maurer, former co-CEO of On — will join Lululemon’s board following the company’s 2026 annual shareholders meeting. The agreement comes as Nike Inc. veteran Heidi O’Neill prepares to take the reins of the company in September.
“We look forward to welcoming Laura and Marc, who will bring additional perspective to our existing group of qualified directors," stated Marti Morfitt, Lululemon executive chair. “Lululemon now has a clear path forward for our incoming CEO, Heidi O’Neill, and our leadership team, as we continue to advance our strategies to foster strong brand health, reaccelerate growth, and deliver enhanced value for our shareholders.”
Under the terms of the agreement, Wilson has agreed to customary standstill, non-disparagement, voting, and related provisions for approximately 18 months until 30 days prior to the nomination deadline for the 2028 annual meeting/
“The board additions Lululemon announced today and strategic changes already made by the team reflect meaningful progress toward restoring the company’s product-first vision and unlocking tremendous value for shareholders,” stated Wilson.
In addition, Wilson agreed that Lululemon will make a donation to support athletic, art and landscaping at Kitsilano Beach in Vancouver, where the company was founded. He had originally asked the retailer to reimburse expenses associated with his proxy contest,
The agreement ends a proxy battle that Wilson launched late last year as the company dealt with sluggish sales and increased competition in the Americas, The founder has been very vocal in his criticism of the chain, and even launched a dedicated website where he advocated for the board changes.
“Lululemon has lost its way,” the website stated. "It’s in need of immediate change."
In turn, Lululemon has stepped up its response to Wilson. Earlier this month, it issued a letter to shareholders saying that Wilson had “outdated perspectives about how to position Lululemon and the future of the company, as well as troubling conflicts of interest.”
"Wilson, who stopped serving on the board over a decade ago for well-documented reasons, has been attacking the company and the board for many years, damaging the brand and hurting shareholders," the letter stated. "He has now put forward three opposing nominees in an attempt to regain increased influence over the company that he has coveted since he left."
