Lululemon founder Chip Wilson has initiated a proxy fight to overhaul the company’s board of directors. The company responded by filing a preliminary proxy statement urging shareholders to support its three nominees. Management recommends that investors use the universal WHITE proxy card for the upcoming vote.
This challenge coincides with a major leadership transition as Nike veteran Heidi O'Neill prepares to take over as CEO. The board recently appointed Esi Eggleston Bracey as a new independent director to continue its refreshment process.
The governance conflict follows a year of sustained share price weakness and significant market decline.