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Chip Wilson Escalates Lululemon Proxy Fight, Presses for Board Overhaul

The company disputes his account, describing ongoing talks as constructive.

Overview

  • In a Feb. 27 letter to shareholders, Wilson called Lululemon’s response to his December proposals “weak and insufficient.”
  • He formally nominated Marc Maurer, Laura Gentile and Eric Hirshberg for the board and argued more than three directors likely need replacing.
  • Wilson said the board took about 70 days to respond, showed openness to a slow “director refresh,” and rejected his proposed brand product committee.
  • Lululemon responded that it has engaged in good faith, said Wilson limited access to his nominees unless settlement terms were met, and noted only Maurer has had preliminary talks.
  • The campaign unfolds during a CEO transition to interim leaders after Calvin McDonald’s Jan. 31 departure for Wella, a multiyear share-price slide and a proxy contest that Wilson says is deterring director recruits.