Lululemon Athletica’s founder, Chip Wilson, announced on Monday that he has initiated a proxy battle by nominating three independent directors to the company’s board. This move comes shortly after the Canadian apparel brand revealed the departure of CEO Calvin McDonald without a clear successor in place. Lululemon has been facing challenges in attracting younger and affluent consumers, with increased competition from emerging brands like Alo Yoga and Vuori, along with pressure from activist investor Elliott Management, leading to a significant decline in the company’s stock value this year.
Wilson has put forward three director candidates for Lululemon’s board, including Marc Maurer, former co-CEO of On Running, Laura Gentile, former chief marketing officer at ESPN, and Eric Hirshberg, former CEO of Activision. In the interim, Lululemon has appointed Meghan Frank as chief financial officer and André Maestrini as chief commercial officer to serve as co-CEOs while they search for a permanent CEO. Wilson criticized the board’s handling of CEO succession, stating that shareholders lack confidence in the board’s ability to choose and support the next CEO independently.
Earlier in the month, the company announced McDonald’s impending departure in January, joining a wave of leadership changes within the global consumer industry. Analysts suggest that adding new board members could help appease Wilson and stabilize the situation. While the nominee choices seem suitable, with Maurer being the only one with direct industry experience at Lululemon, it is speculated that Wilson did not seek a board seat for himself due to his significant stake in Amer Sports, a competitor of Lululemon.
Lululemon has not yet responded to requests for comments. The news was initially reported by The Wall Street Journal.
