Lululemon settles proxy battle with founder Chip Wilson, agrees to two board nominees
Lululemon is ending its feud with founder Chip Wilson. The athletic apparel company entered into an agreement with Wilson on Wednesday that ended a messy
Lululemon is ending its feud with founder Chip Wilson. The athletic apparel company entered into an agreement with Wilson on Wednesday that ended a messy proxy contest the founder started late last year as its largest individual shareholder. Under the terms of the deal, Luluelmon has agreed to appoint two of Wilson's nominees – former On co-CEO Marc Maurer and former ESPN Chief Marketing Officer Laura Gentile – and an additional director with "product and brand expertise in apparel" by October.
In exchange, Wilson agreed not to bad-mouth the company for about a year and a half, among other provisions. Lululemon's shares were up more than 3% in afternoon trading. Wilson previously asked the company to reimburse expenses associated with his proxy contest, but ultimately agreed instead to a donation that Lululemon will make to Kitsilano Beach in Vancouver, British Columbia, where Lululemon was founded, to support athletics, art and landscaping.
"We are pleased to reach this agreement with Chip Wilson, which allows lululemon to focus on continuing to strengthen its performance," said Marti Morfitt, Lululemon's executive chair, in a press release. "We look forward to welcoming Laura and Marc, who will bring additional perspective to our existing group of qualified directors. 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." Wilson said the appointees, alongside strategic changes already made, "reflect meaningful progress toward restoring the company's product-first vision and unlocking tremendous value for shareholders."
The BriefWire