Lululemon founder adds three new board members

Core Viewpoint - Lululemon Athletica's founder Chip Wilson has initiated a proxy fight by nominating three independent directors to the board following the recent departure of CEO Calvin McDonald, amid challenges in maintaining market share and investor confidence [1][2]. Company Developments - Lululemon's shares have decreased by nearly 50% this year as the company faces difficulties in appealing to younger, affluent consumers and contending with competition from brands like Alo Yoga and Vuori, alongside pressure from activist investor Elliott Management [2]. - The board has appointed Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini as interim co-CEOs while searching for a permanent CEO [3]. Board Changes and Proxy Fight - Chip Wilson has nominated three candidates for the board: Marc Maurer, Laura Gentile, and Eric Hirshberg, aiming to enhance board oversight and restore a product-first mindset [2][9]. - Wilson has expressed concerns about the board's ability to select a new CEO without stronger product experience, citing a lack of faith in the current board's oversight [5]. Investor Relations - Elliott Management, which holds a $1 billion stake in Lululemon, has been collaborating with former Ralph Lauren executive Jane Nielsen for a potential CEO role, although Wilson is not coordinating with Elliott in his proxy fight [3][4]. - Wilson holds a 4.27% stake in Lululemon, making him one of the largest independent shareholders [8]. Historical Context - Wilson has a history of advocating for changes within Lululemon's board, having previously stepped back from daily operations and resigned from chairman and director positions due to strategic disagreements and public relations issues [10][11].