Lululemon bought itself peace — at least for now. The company has struck a cooperation agreement with its disgruntled founder Chip Wilson, who has agreed to drop his proxy battle against the board.
Lululemon Athletica Inc., LULU
Wilson, who still holds roughly 8.7% of the company, has been a vocal critic of Lululemon for more than a decade. His latest push centred on adding product-focused directors to the board and then letting them choose a new CEO.
The board had other plans. It already named former Nike executive Heidi O’Neill as incoming CEO earlier this year, and she is set to start in September.
The agreement removes a potential flashpoint at the company’s annual meeting, scheduled for June 25.
Under the deal, two new directors will join the board after that meeting. Laura Gentile, former chief marketing officer of ESPN, and Marc Maurer, former co-CEO of On Holding, are both set to take seats.
A third director, described as someone with “product and brand expertise in apparel,” will be added by October 2026.
Wilson called the moves a step in the right direction. “The board additions Lululemon announced today and strategic changes already made by the team reflect meaningful progress toward restoring the company’s product-first vision and unlocking tremendous value for shareholders,” he said.
As part of the deal, Wilson signed standstill, non-disparagement, and voting provisions. Those restrictions run for approximately 18 months.
That means no public attacks, no more proxy campaigns, and a commitment to vote with the board — at least for now.
Executive Chair Marti Morfitt said the board welcomed the resolution. “We are pleased to reach this agreement with Chip Wilson, which allows Lululemon to focus on continuing to strengthen its performance,” she said.
The agreement gives O’Neill room to settle in without a public fight hanging over her first months in the role.
Morfitt added that the company 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.”
Lululemon’s Q1 revenue rose year over year, though the stock pulled back following those results. The board has been undergoing a broader refresh ahead of O’Neill’s arrival.
Wilson and the three director candidates — Gentile, Maurer, and Eric Hirshberg — all met with the board as part of the process leading to this agreement.
The standstill provisions are set to expire in approximately 18 months from the date of the agreement.
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