Chip Wilson's Proxy Battle: A New Chapter in Lululemon's Leadership Saga

Lululemon founder Chip Wilson initiates a proxy fight by nominating three independent directors to the board after the unexpected CEO exit. The company's shares have dropped significantly amid competitive pressures and Wilson criticizes the board's lack of a succession plan. Elliott Management's $1 billion stake adds complexity.

Lululemon's founder Chip Wilson announced a proxy battle on Monday, aiming to restructure the company's board by nominating three independent directors. This decision follows the unexpected departure of CEO Calvin McDonald, which left the yoga wear giant without a clear successor. The company's stock has plummeted nearly 50% this year as it faces fierce competition and shareholder pressure.

Wilson's chosen board nominees include Marc Maurer, Laura Gentile, and Eric Hirshberg, with the board temporarily appointing Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini as co-CEOs. Meanwhile, activist investor Elliott Management, which holds a $1 billion stake, has had discussions about appointing a new CEO, though they remain separate from Wilson's plans.

Lululemon's board is set to review Wilson's nominees and present recommendations by the 2026 shareholders meeting. The ongoing leadership shuffle underscores tensions between preserving the company's core 'product-first' philosophy and adapting to the challenges posed by newer competitors and evolving consumer trends.

(With inputs from agencies.)