By Juveria Tabassum
Dec 29 (Reuters) – Lululemon Athletica’s founder Chip Wilson said on Monday he had launched a proxy fight by nominating three independent directors to the company’s board, just over two weeks after the apparel maker announced the exit of CEO Calvin McDonald without a clear successor.
Lululemon shares have shed nearly half their value this year as the company struggles to find its footing with younger and affluent shoppers, while battling stiff competition from fast-growing newer rivals such as 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 Marc Maurer, former ESPN Chief Marketing Officer Laura Gentile and former Activision CEO Eric Hirshberg.
The board installed Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini as interim co-CEOs while they search for a permanent replacement.
Reuters had reported that Elliott Management, which disclosed a $1 billion stake in the company earlier this month, had been working closely for months with former Ralph Lauren executive Jane Nielsen for a potential CEO role.
When asked whether Wilson was teaming up with activist investor Elliott in pushing for the board change, a person familiar with Wilson’s thinking said he was not working with any other investor. At the same time, Elliott’s campaign for a new CEO would not interfere with his plans, the person added, asking not to be named.
Wilson had spoken to Nielsen, but any CEO selected by the company before board changes would not have Wilson’s support, the source said.
“The recent CEO change announcement was the third total failure of board oversight, with no clear succession plan in place. Shareholders have no faith that this board can select and support the next CEO without input from a board with stronger product experience,” Wilson said in a statement.
Lululemon did not immediately respond to a Reuters request for comment. The company’s shares rose about 1% in morning trading.
“Adding three new board members seems like something that Lululemon would be willing to do. It might keep Wilson from constantly attacking the board, at least. The nominees appear to be fine, although only one of the three (Maurer) has direct experience in Lululemon’s industry,” Morningstar analyst David Swartz said.
Wilson likely did not ask for a board seat for himself as he owns a significant stake in Lululemon’s competitor Amer Sports, Swartz added.
The Wall Street Journal first reported about Wilson launching a proxy fight against Lululemon’s board earlier in the day.
WILSON’S HISTORY WITH LULULEMON
Wilson is one of the biggest independent shareholders of Lululemon, with a 4.27% stake as of December 2025, according to LSEG data.
The yogawear maker’s founder had previously called for an urgent search for a CEO to replace McDonald, led by new, independent directors with a deep knowledge of the company to restore a “product-first” mindset at the company.
This is not the first time Wilson has pushed for changes at Lululemon’s board.
After founding the apparel company in 1998, Wilson withdrew from daily operations in 2012 and resigned as chairman a year later following a recall of see-through yoga pants that led to the departures of top executives amid a public-relations storm.
He also quit the director post in 2015 after clashing with the board over strategy. However, a proxy fight was averted after Wilson agreed to sell about half of his 27% stake to private-equity firm Advent International for $845 million in return for two additional director positions.
(Reporting by Juveria Tabassum, Sanskriti Shekhar and Anuja Bharat Mistry in Bengaluru; Editing by Dawn Kopecki, Shailesh Kuber and Anil D’Silva)
