Lululemon urges shareholders to reject Chip Wilson board slate

Lululemon publicly escalated its dispute with founder Chip Wilson on Monday, urging shareholders to reject his slate of board nominees ahead of a critical annual meeting next month. The company’s shareholder letter marks its first significant public response to Wilson’s proxy campaign, which intensified late last year.

The letter followed the breakdown of settlement negotiations last week. According to the company, it delayed filing its definitive proxy statement while pursuing a negotiated resolution, only for Wilson to present a counterproposal described as a significant departure from prior discussions. Wilson’s demands included the appointment of three directors of his choosing, quarterly meetings with the incoming CEO, and full reimbursement of his campaign costs. The company rejected these terms.

In the letter, Lululemon criticized Wilson’s understanding of the current business and his vision for the brand, stating his perspectives are outdated and his conflicts of interest are troubling. The company argued Wilson, who left the board over a decade ago and has had no operating role for nearly 15 years, remains intractably focused on the past. Wilson has been a frequent...