Lululemon settles proxy battle with founder Chip Wilson, agrees to two board nominees
Lululemon has settled its proxy battle with founder Chip Wilson by agreeing to appoint two of his nominees to the board. The agreement ends a contentious dispute that began last year, allowing the company to focus on its performance. In return, Wilson will refrain from criticizing Lululemon for a specified period and the company will make a donation to support local initiatives in Vancouver.
- ▪Lululemon will appoint two board nominees proposed by founder Chip Wilson.
- ▪The agreement includes a provision for Wilson to refrain from criticizing the company for about a year and a half.
- ▪Lululemon's shares rose about 4% following the announcement of the settlement.
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Lululemon is ending its feud with founder Chip Wilson. The athletic apparel company entered into an agreement with Wilson on Wednesday that ended a messy proxy contest the founder started late last year as its largest individual shareholder. Under the terms of the deal, Luluelmon has agreed to appoint two of Wilson's nominees – former On co-CEO Marc Maurer and former ESPN Chief Marketing Officer Laura Gentile – and an additional director with "product and brand expertise in apparel" by October. In exchange, Wilson agreed not to bad mouth the company for about a year and a half, among other provisions.Shares rose about 4% in early trading.
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