Lululemon Settles Proxy Fight, Adds 2 Chip Wilson Nominees as Shares Rise 4%
Updated
Updated · CNBC · May 27
Lululemon Settles Proxy Fight, Adds 2 Chip Wilson Nominees as Shares Rise 4%
12 articles · Updated · CNBC · May 27
Lululemon agreed Wednesday to appoint two founder Chip Wilson nominees—former On co-CEO Marc Maurer and former ESPN marketing chief Laura Gentile—plus a third apparel-focused director by October, ending the proxy battle Wilson launched last year.
The deal also bars Wilson from disparaging the company for about 18 months, giving incoming CEO Heidi O'Neill what executive chair Marti Morfitt called a clearer path to pursue growth and brand-rebuilding plans.
Shares rose about 4% in early trading as the settlement removed a governance overhang that had pitted the company against its largest individual shareholder.
Wilson dropped his request for proxy-fight expense reimbursement, with Lululemon instead agreeing to make a donation to Vancouver's Kitsilano Beach, the neighborhood where the company was founded.
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