A feud brewing between Lululemon and founder Chip Wilson has simmered down, as the brand on Wednesday announced it has entered into a cooperation agreement with its founder, who owns about 8.7% of its outstanding common stock.
Two people Wilson nominated last year – former ESPN Chief Marketing Officer Laura Gentile and former On co-CEO Marc Maurer – will join the board after all, following the company’s annual meeting, per Lululemon’s press release.
As recently as last week, Lululemon defended its already “refreshed board” as well as its choice of a new chief executive, and had harsh words for Wilson. Former Nike executive Heidi O’Neil will take the top spot later this year.
The two sides have traded barbs since last year as their battle has escalated. The brand has said that Wilson wasn’t working constructively, and Wilson complained the brand wasn’t taking his criticisms seriously.
In a statement Lululemon Executive Chair Marti Morfitt said the board is pleased to reach an agreement with Wilson.
That doesn’t just mean the addition of two of Wilson’s preferred board candidates. Wilson in turn has also “agreed to customary standstill, non-disparagement, voting, and related provisions for approximately 18 months until 30 days prior to the nomination deadline for the 2028 annual meeting.”
Lululemon grew leaps and bounds under the leadership of former CEO Calvin McDonald, who left in January, but more recently growth has stalled. Meanwhile, competition in the space is fiercer.
