Lululemon Athletica founder Chip Wilson has nominated three executives to the Canadian activewear brand’s board. Management is currently at a crossroads.
Wilson has recommended Marc Maurer, the former co-CEO of On Holding, Laura Gentile, the former chief marketing officer of ESPN, and Eric Hirshberg, the former CEO of Activision, as candidates. All three are expected to stand for election at Lululemon’s 2026 annual meeting. Additionally, Wilson has submitted a non-binding proposal to declassify the board. The aim is for all board members to be elected annually by the shareholders in the future.
This move comes just weeks after confirming that Lululemon CEO Calvin McDonald would be stepping down from his position. This announcement fundamentally changed the leadership of the company. McDonald’s departure, planned for January 31, 2026, comes during a phase of weak business development at Lululemon. This has increased calls for fundamental change in management. Wilson in particular had previously stated that the brand needed new skills.
Following the announcement of McDonald’s resignation, Reuters sources reported that Elliott Investment Management had acquired a stake in Lululemon worth over $1 billion. It is believed that Elliott is looking to tap former Ralph Lauren executive Jane Nielsen for the CEO position.
Elliott is now considered one of Lululemon’s largest investors, alongside Wilson. Both have publicly stated that they want to revive the struggling brand – especially against the backdrop of an increasingly difficult business environment in the USA.
“As I have emphasized for years, Lululemon needs visionary and creative leadership to succeed. The simple truth is that the current board lacks these skills. As a result, Lululemon is unable to regain the trust of its key stakeholders and regain commercial momentum,” Wilson said. “The candidates I propose today represent the change necessary to redefine Lululemon and begin the company’s next chapter of success.”
Wilson also described the upcoming CEO change as a “failure” by the board due to a lack of a succession plan. “Shareholders have no confidence that this board can select and support the next CEO without the input of a board with greater product experience. The board needs to be renewed to strengthen creative and brand-focused competencies,” he added.
Lululemon responds to Wilson’s statement of intent
Lululemon has now officially responded to Wilson’s intention. The announcement marks a significant escalation in tensions between the athleisure company and its founder, who has repeatedly publicly criticized the company’s current strategic direction. In a statement released Monday, Lululemon’s board confirmed that it had communicated with Wilson over several years to understand his perspectives. However, he recently refused to provide the names of his candidates for prior internal review and instead made a public submission.
The board emphasized that the candidates – reportedly former executives from On Holding AG, ESPN and Activision – would be vetted according to standard corporate governance procedures.
The so-called proxy dispute comes at a critical time for the company, following the Dec. 11 announcement that CEO Calvin McDonald would resign effective Jan. 31, 2026. As the board initiates a comprehensive global search for a successor, management points to the growth record of the past ten years as evidence of the effectiveness of the current strategy.
Since fiscal 2015, Lululemon has increased its revenue from $2.1 billion to an expected $11 billion by the end of fiscal 2025, while operating income has increased nearly sixfold. The board noted that this financial strength has enabled more than $5.5 billion in share repurchases and underscores the company’s commitment to long-term shareholder value, despite recent market volatility and increasing competition from brands such as Alo Yoga and Vuori.
Lululemon’s leadership continues to emphasize its focus on a “transformation-ready” future, pointing to a renewed board, more than a third of whose members were appointed in just the past four years. While recognizing the need to pursue additional growth opportunities in the US market, the company continues to view its international strength as a central pillar of its “compelling growth story.”
Shareholders are currently advised not to take any immediate action. The board said it will make a formal recommendation on Wilson’s nominees in a final proxy statement ahead of the 2026 annual meeting, as the company continues to navigate both internal governance challenges and external pressure from activist investors such as Elliott Investment Management.
This article was created with the help of Rachel Douglass and Prachi Singh.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]