Lululemon Settles Proxy Battle with Founder Chip Wilson

Lululemon Athletica has reached a settlement with its founder, Chip Wilson, ending a public proxy battle over the company's board and strategic direction. The agreement, announced Wednesday, will see two of Wilson's nominees join the board and includes an 18-month truce during which Wilson has agreed not to publicly criticize the company.

Under the terms of the deal, former ESPN chief marketing officer Laura Gentile and former On co-CEO Marc Maurer will join Lululemon's board. The company has also committed to appointing a third mutually agreed-upon director with product and brand expertise by October 1. In exchange, Wilson, who owns an 8.7 percent stake in the company, will refrain from public disparagement of the retailer for approximately 18 months.

The resolution removes a significant distraction ahead of the company's upcoming shareholder meeting in June. Executive Chair Marti Morfitt stated that the agreement allows Lululemon to focus on strengthening its performance and provides a clear path forward for incoming CEO Heidi O'Neill and the leadership team. Wilson said the new appointments and recent strategic changes reflect meaningful progress toward restoring the...