Lululemon founder launches proxy fight to reshape apparel maker’s board
listen to this article
approx 2 minutes
The audio version of this article has been generated by AI-based technology. There may be incorrect pronunciations. We are working with our partners to continually review and improve results.
Lululemon Athletica founder Chip Wilson said Monday he has launched a proxy fight by nominating three independent directors to the company’s board, days after the Canadian apparel maker announced the exit of CEO Kelvin Macdonald.
Lululemon has struggled to make inroads among young and affluent shoppers amid stiff competition from fast-growing new rivals like Alo Yoga and Vuori, as well as pressure from activist investor Elliott Management.
Wilson has nominated three director candidates to Lululemon’s board, including former On Running co-CEO Mark Maurer, former ESPN chief marketing officer Laura Gentile and former Activision CEO Eric Hirshberg.
“The recent CEO change announcement was the third complete failure of board oversight without a clear succession plan. Shareholders have no confidence that this board can select and support the next CEO without the input of a board with strong product experience,” Wilson said in a statement.
Earlier this month, the company said McDonald’s would step down in January, joining a long list of leadership changes at global consumer companies and retailers.
Lululemon did not immediately respond to a Reuters request for comment. The Wall Street Journal first reported this news.
