Lululemon Athletica Inc.‘s (NASDAQ:LULU) founder and one of its largest independent shareholders, Chip Wilson, nominated three new directors to the board of the athleisure maker, including former executives from ESPN and Activision, to address what he calls a lack of “visionary creative leadership.”
Wilson’s move on Monday follows the announcement of CEO Calvin McDonald‘s departure after a challenging seven-year tenure. The company did not name a successor.
Wilson criticized the board’s oversight, stating, “Shareholders have no faith that this board can select and support the next CEO without input from a board with stronger product experience.”
“This is the only way to restore shareholder confidence and set lululemon back on the path to growth, product innovation and premium quality.”
Chip Wilson’s Bold Vision For Lululemon’s Future
Elliott Investment Management, holding a $1 billion stake in Lululemon, is reportedly supporting the overhaul by pushing for former Ralph Lauren executive Jane Nielsen to become the next CEO. The Wall Street Journal, which first reported the news earlier on Monday, noted Elliott’s involvement in the proxy fight, indicating a shared sentiment for change at the helm of the athleisure giant.
Also Read: How Is The Market Feeling About Lululemon Athletica Inc?
Wilson’s nominations include former On Running co-CEO Marc Maurer, former ESPN Chief Marketing Officer Laura Gentile, and former Activision CEO Eric Hirshberg.
In a statement, Lululemon said that its board and leadership have long engaged with Wilson and communicated the company’s strategy, and now that his nominees have been formally submitted, the board will review them through its standard governance process.
Recurring Governance Tensions
Despite stepping down as CEO in 2005, Wilson remains vocal about the company’s direction, having criticized its diversity efforts and bureaucracy in the past.
And, this is not the first time Wilson has pushed for changes at Lululemon’s board.
After founding the apparel company in 1998, he stepped back from day-to-day operations in 2012 and resigned as chairman a year later, following a recall of see-through yoga pants that sparked a public-relations crisis and led to the exit of several top executives.
Wilson later left the board entirely in 2015 after clashing with directors over strategy. A proxy fight was ultimately avoided when he agreed to sell roughly half of his 27% stake to private equity firm Advent International, in exchange for the appointment of two additional directors.
LULU Price Action: Shares were up 0.45% at $213.50 during premarket trading on Tuesday, according to Benzinga Pro. LULU has plummeted by over 40% in 2025, as the company struggles to attract younger and affluent shoppers amid stiff competition from fast-growing newer rivals.
According to Benzinga’s Edge Rankings, the stock shows strong value characteristics, while momentum and quality lag, alongside positive short- and medium-term price trends, but a weaker long-term outlook.
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