Lululemon Founder Chip Wilson Proposes Five-Pillar Plan in Proxy Battle

Lululemon founder Chip Wilson, a roughly 10 percent shareholder, has released a five-pillar plan aimed at restoring the company’s focus on creative leadership. Wilson is engaged in a proxy battle to elect three directors of his choosing at the annual meeting scheduled for June 11.

The board moved ahead of the vote by naming two new independent directors and selecting Heidi O’Neill as the next chief executive officer. Wilson stated on March 18 that significant change was still needed at the board level before a new CEO could be selected.

In April the board announced the appointments of Chip Bergh, former president and CEO of Levi Strauss, and Esi Eggleston Bracey, former chief growth and marketing officer at Unilever. The board also named Heidi O’Neill, who spent nearly 28 years at Nike, as CEO.

She is scheduled to begin in September. Wilson has criticized the selection of O’Neill, noting that Lululemon’s stock dropped after the announcement. He questioned whether she has the right experience to lead the $11 billion global brand as it shifts from rapid growth to a more mature phase.

One of Wilson’s proposed directors is Marc Maurer, former co-CEO of On Holding. ” He said the company has drifted from that focus through partnerships such as the one with Disney, the acquisition of Mirror, and the launch of footwear and small accessories.

The plan also stresses obsessing over technical details, driving disruption, building a culture of experimentation, and returning to product excellence. Wilson has said the current board lacks the skill set to hire leaders with strong creative vision.

He expressed being underwhelmed by the board’s chosen candidates and stated that Lululemon is not a toothpaste brand in reference to Bergh’s background at Procter & Gamble. Two current board members, including David Mussafer of Advent International, are resigning and will be replaced if the new candidates are elected.

The company has described itself as being in transition rather than decline. Wilson maintains that Lululemon has lost its edge and needs to prioritize innovation and technical excellence to compete with brands such as Alo, Vuori, Fabletics and Gymshark.

His three nominated directors include Laura Gentile, chief marketing officer of ESPN, and Eric Hirshberg, former CEO of Activision.

The proxy vote on June 11 will determine whether any or all of Wilson’s candidates join the board. Proxy Analyst has estimated odds of six out of ten that some or all of Wilson’s nominees could win seats, with Maurer viewed as having the strongest chance.

Heidi O’Neill’s formal start date remains September, after the shareholder meeting. Wilson’s plan is presented as a return to the principles that originally built the brand. The company has not publicly detailed its response to the specific pillars beyond the recent board and CEO announcements.