Lululemon founder Chip Wilson launched a proxy fight against the athletic apparel retailer on December 29, nominating three independent directors to reshape the board. The 70-year-old founder, who started the company in 1998, controls approximately 9% of Lululemon shares as its second-largest shareholder.
Wilson nominated Marc Maurer, former co-CEO of On Running; Laura Gentile, former ESPN chief marketing officer; and Eric Hirshberg, former Activision CEO. The nominations target Lululemon's 2026 annual shareholder meeting, with Wilson also proposing to declassify the board for annual director elections.
Lululemon faces what Wilson calls an "identity crisis" following CEO Calvin McDonald's planned January 2026 departure. The company's stock has declined 45% this year despite a 15% gain over the past month. Third-quarter results showed Americas revenue decreased 2% year-over-year, with overall income down 11%.
"The current Board lacks these skills and, as a result, Lululemon is unable to win back the confidence of its critical stakeholders and regain commercial momentum," Wilson stated in a press release. He described McDonald's departure as "the third total failure of Board oversight with no clear succession plan in place."
Maurer led On Running from January 2021 to June 2025, during which the company's revenue nearly quadrupled. Maurer stepped down as co-CEO of On Holding in June 2025 after 12 years with the company. Gentile founded ESPN's women-focused espnW platform during her tenure from 2018 to 2023. Hirshberg oversaw Activision's Call of Duty and Destiny franchises from 2010 to 2018, with Activision Blizzard's stock rising 500% during his leadership.
Wilson's proxy fight follows activist investor Elliott Investment Management acquiring a stake exceeding $1 billion in Lululemon. Elliott reportedly advocates for former Ralph Lauren executive Jane Nielsen as McDonald's replacement. Wilson has spoken with Nielsen but believes shareholders won't trust any CEO selected by the current board.
Lululemon responded that it will "evaluate Mr. Wilson's director nominees in due course in accordance with the Board's governance process." The company highlighted recent 7% net revenue growth and 2% gross profit increase year-over-year in its most recent financial results.
Consumer sentiment reflects challenges facing the brand, with social media comments citing declining product quality and increased competition from Athleta, Alo Yoga, and Vuori. Only about 10% of S&P 500 companies maintain staggered director elections like Lululemon's current structure, according to Wilson's proposal.
Analyst firm Jefferies noted in a December 17 report that Lululemon must refresh its board, select a "thoughtful CEO with real leadership," and return to its yoga brand roots. The firm characterized the necessary turnaround as a "multi-year lift" for the struggling retailer.
Wilson, who resigned from Lululemon's board in 2015 following controversial comments about women's bodies and yoga pants, stated his campaign "cannot be about me." The founder emphasized the need for "visionary creative leadership" to restore Lululemon's premium positioning in the competitive athletic apparel market.
