The athletic apparel company adds two of Wilson’s nominees to its board and pledges a third director by October 1.
Lululemon settled a proxy fight with founder Chip Wilson, agreeing to appoint two of his board nominees and a third director with apparel expertise by October 1. The deal replaces a costly reimbursement demand with a donation to a Vancouver beach project tied to athletics and art.
The agreement ends a dispute that began late last year, as Wilson sought greater influence over the company he founded in 1998. The incoming directors include Marc Maurer, former co-CEO of On, and Laura Gentile, ex-CMO of ESPN. Lululemon’s stock rose about 4% in early trading following the announcement.
Executive chair Marti Morfitt called the resolution a step forward for incoming CEO Heidi O’Neill, who takes over in September. Wilson said the changes reflect progress toward restoring the company’s product-focused vision.