Lululemon settles proxy battle with founder Chip Wilson
CNBC • • business
Key Points:
- Lululemon and founder Chip Wilson have resolved their proxy contest with an agreement that includes appointing two of Wilson's nominees and an additional apparel expert to the board by October.
- In return, Wilson agreed not to publicly criticize the company for about 18 months and accepted a donation to Kitsilano Beach in Vancouver instead of expense reimbursement for his proxy battle.
- The settlement ends a public feud that began last year, during which Wilson criticized Lululemon’s performance and leadership while the company accused him of outdated views and conflicts of interest.
- Lululemon’s shares rose about 4% in premarket trading following the announcement, as the company aims to refocus on growth and brand health under incoming CEO Heidi O'Neill.
- The company has faced challenges including slowing growth in its largest market, tariff costs, increased competition, and a nearly 39% decline in share price year to date.