Lululemon’s founder has initiated a proxy fight, nominating three independent directors to the board in a bid to address what he sees as leadership shortcomings. Chip Wilson, holding an 8% stake, announced the move on 29 December 2025, just as the athleisure giant faces stagnant sales and a CEO transition.
The nominations target the 2026 annual meeting, with Wilson also pushing to declassify the board for annual elections. This development follows a year where shares fell more than 40%, erasing significant value.
The Nominated Directors
The trio includes Marc Maurer, who served as co-CEO of On Holding AG from 2021 to 2025, during which he drove nearly quadrupled revenue, global brand expansion, and product diversification. On Running’s trailing 12-month revenue reached £2.5 billion ($3.9 billion) by September 2025. Maurer previously handled business development at Valora Retail.
Laura Gentile, former chief marketing officer at ESPN from 2018 to 2023, oversaw creative output, fan engagement, and social media strategies, achieving record viewership and launching espnW for women’s sports. She later co-founded Storied Sports. Eric Hirshberg, ex-CEO of Activision from 2010 to 2018, grew segment profit nearly twofold and stock by 500%, managing franchises like Call of Duty.
Before that, he was co-CEO at Deutsch LA advertising agency. Wilson selected these candidates for their expertise in creative, brand-first leadership, arguing they are fully independent and poised to refocus on product innovation and premium quality.
Wilson’s Criticisms of the Current Board
Wilson has lambasted the board for lacking visionary creative skills and failing in oversight, pointing to three CEO changes without a clear succession plan. The recent departure of Calvin McDonald after seven years, with no immediate replacement, exemplifies this, he says.
Lululemon’s US sales have stagnated amid competition from Alo Yoga, Vuori, and budget knock-offs. The company is unlikely to hit its goal of doubling sales to £9.2 billion ($12.5 billion) by 2026. Expected revenue for fiscal 2025 sits at £8.2 billion ($11 billion). Shares closed at £157.21 ($212.54) on 29 December, down from around £281 ($380) at the year’s start, with market capitalisation now at £19.6 billion ($26.4 billion).
Wilson, who stepped down as CEO in 2005 and left the board in 2015, has long critiqued decisions, including diversity efforts he opposed in 2018. He controls entities owning 9,904,856 shares.
Potential Board Changes and Challenges
The proxy fight could refresh oversight ahead of selecting McDonald’s successor, with activist Elliott Investment Management reportedly eyeing retail executive Jane Nielsen for the role. Declassifying the board would allow annual shareholder votes on all directors, a structure only 10% of S&P 500 firms retain.
Analyst Neil Saunders from GlobalData noted the firm has ‘run out of steam‘ due to competition and dated styles. Wilson’s push seeks to maximise long-term value, but faces pushback; Lululemon responded that shareholders need not act now.
As of 30 December 2025, shares edged up slightly in response. In a post on X, Front Office Sports captured Wilson’s sentiment: ‘It is clear to the world that lululemon is special, but in need of change.’
Lululemon founder Chip Wilson is mounting a board challenge.
The company’s second-largest shareholder said about $LULU: “It is clear to the world that lululemon is special, but in need of change.”
— Front Office Sports (@FOS) December 29, 2025
The founder stressed the nominees would restore stakeholder confidence amid the Lululemon founder proxy fight. Company officials indicated recent discussions with Wilson had flagged his intent.
Meanwhile, activist investor Elliott Investment Management has also nominated its own board candidates, amplifying pressure on Lululemon alongside Wilson’s efforts. This combined activism underscores broader investor unease with the company’s trajectory as of 30 December 2025.
Originally published on IBTimes UK
