Shareholders approved three new directors, resolving a proxy fight and easing governance concerns ahead of a CEO transition.
Lululemon Athletica Inc (NASDAQ:LULU) shares climbed over 3% following shareholder approval of three management-backed directors at its annual meeting. The move settles a prolonged proxy dispute with founder Chip Wilson, who holds an 8.6% stake in the company.
The newly elected board members include former Levi Strauss CEO Chip Bergh, Unilever executive Esi Eggleston Bracey, and finance veteran Teri List. Two of Wilson’s nominees also joined as independent directors, with a third expected by October 1, expanding the board to 11 members. The settlement includes an 18-month commitment from Wilson to refrain from public criticism.
The resolution comes as Lululemon prepares for incoming CEO Heidi O’Neill, who takes over in September. The company has faced pressure from competitors like Alo Yoga and Vuori, with its stock down roughly 50% over the past year.