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Lululemon Athletica’s founder Chip Wilson said on Monday he had launched a proxy fight by nominating three independent directors to the company’s board, just over two weeks after the Canadian apparel maker announced the exit of CEO Calvin McDonald without a clear successor.
Lululemon has struggled to find its footing with younger and affluent shoppers amid stiff competition from fast-growing newer rivals like Alo Yoga and Vuori, as well as pressure from activist investor Elliott Management. The company’s shares have shed nearly half their value this year.
Wilson has nominated three director candidates to Lululemon’s board, including former On Running co-CEO Marc Maurer, former ESPN chief marketing officer Laura Gentile and former Activision CEO Eric Hirshberg.
The board installed chief financial officer Meghan Frank and chief commercial officer André Maestrini as interim co-CEOs while they search for a permanent replacement.
“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,” Wilson said in a statement.
Earlier this month, the company said McDonald would step down in January, joining a long list of leadership shakeups across global consumer companies and retailers.
“Adding three new board members seems like something that Lululemon would be willing to do. It might keep Wilson from constantly attacking the board, at least,” said Morningstar analyst David Swartz.
“The nominees appear to be fine, although only one of the three (Maurer) has direct experience in Lululemon’s industry,” he noted, adding that Wilson likely did not ask for a board seat for himself, as he owns a significant stake in Lululemon’s competitor Amer Sports.
Lululemon did not immediately respond to a Reuters request for comment. The Wall Street Journal first reported the news.
Read More: Lululemon founder launches a proxy fight to reshape apparel maker’s board
