Lululemon Athletica's billionaire founder is taking matters into his own hands. Chip Wilson announced Monday that he has nominated three independent directors to the company's board, launching a full-scale proxy fight against the athleisure giant he started more than 25 years ago.

The move comes just two weeks after CEO Calvin McDonald's sudden departure sent shockwaves through Wall Street, leaving the company without a clear succession plan and intensifying concerns about Lululemon's strategic direction.

A Founder's Frustration Boils Over

Wilson, who owns approximately 4.27% of Lululemon's shares and remains one of its largest individual shareholders, didn't mince words in his statement announcing the proxy fight.

"The recent CEO change announcement was the third total failure of board oversight, with no clear succession plan in place. Shareholders have no faith that this board can select and support the next CEO without input from a board with stronger product experience."

— Chip Wilson, Lululemon Founder

Wilson's frustration has been building for years. He left the board in 2015 but has remained a vocal critic of decisions he believes have diluted the brand's premium positioning and core athletic identity.

The Nominees: A Strategic Power Play

Wilson has assembled a formidable slate of candidates, each bringing specific expertise that addresses his core criticisms of the current board:

  • Marc Maurer – Former co-CEO of On Running, the Swiss athletic shoe company that has become a darling of the performance footwear market. Maurer brings direct experience scaling a premium athletic brand.
  • Laura Gentile – Former Chief Marketing Officer at ESPN, with deep expertise in brand management and consumer engagement at scale.
  • Eric Hirshberg – Former CEO of Activision, bringing experience leading global entertainment brands through periods of significant transformation.

Notably, Wilson isn't nominating himself to the board—a strategic choice that may help his campaign appeal to institutional investors who might otherwise be wary of founder overreach.

Elliott Investment Management Adds Pressure

Wilson isn't alone in pushing for change. Elliott Investment Management, the aggressive activist hedge fund led by Paul Singer, has built a stake worth approximately $1 billion in Lululemon and is independently pushing for the company to name former Ralph Lauren executive Jane Nielsen as its next CEO.

The dual pressure from Wilson and Elliott creates a challenging dynamic for the interim leadership team. Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini are serving as co-CEOs while the board conducts its CEO search, but major investors clearly believe more fundamental governance changes are needed.

A Stock in Free Fall

The stakes couldn't be higher. Lululemon shares have plunged nearly 45% in 2025, wiping out tens of billions of dollars in market value as the company struggles to recapture momentum with younger consumers while fending off aggressive competition from upstarts like Alo Yoga and Vuori.

The company's once-unassailable brand positioning has eroded as competitors have successfully targeted the same affluent, health-conscious demographic that made Lululemon a retail phenomenon. Sales growth has slowed markedly, and the path back to premium valuations remains unclear.

Lululemon's Response

The company pushed back against Wilson's characterization, noting in a statement that its board and leadership team have "engaged extensively" with the founder for years. Lululemon also revealed that it offered to evaluate Wilson's director nominees privately, but he declined.

"The Board will evaluate Mr. Wilson's director nominees in accordance with its governance process," the company stated, suggesting a potentially lengthy battle ahead.

What Comes Next

For investors, the proxy fight introduces both opportunity and uncertainty. Successful activist campaigns can unlock significant value, but contested board elections can also distract management during critical periods.

The key dates to watch will be Lululemon's annual meeting—likely in the spring—where shareholders will ultimately decide whether Wilson's slate deserves seats at the table. Until then, expect continued volatility as both sides make their cases to institutional investors who will ultimately determine the outcome.

One thing is certain: the company Wilson built from a single Vancouver yoga studio in 1998 is at a crossroads, and its founder is determined to have a say in which path it takes.