Overview
- Lululemon, which released a letter to shareholders Monday, called founder Chip Wilson’s views outdated and asked investors to vote down his three board nominees.
- The company said settlement talks broke down last week after Wilson sought three seats, two appointed right away, plus quarterly meetings with the incoming CEO and reimbursement of his campaign costs.
- Negotiation materials reported by CNBC showed Lululemon had offered to add two of Wilson’s nominees after the meeting and to form a product advisory council, but the board said his counterproposal departed from what had been discussed.
- Wilson filed a definitive proxy and a GOLD universal proxy card and said he remains open to a deal, claiming he had agreed in principle to most terms and wants shareholders to back his slate.
- Lululemon defended incoming CEO Heidi O’Neill and said Wilson’s picks lack public-company board and retail experience, flagging a potential conflict in nominee Marc Maurer’s large stake in competitor On, as the company’s shares are down about 40%–43% this year and a June 5 earnings report looms.