Wilson Backs Lululemon Director Exit and Board Refresh
Wilson welcomed lead director David Mussafer's exit but demanded a broader board refresh. He called the appointment of Chip Bergh underwhelming as shares fell.
Chip Wilson, the founder of Lululemon Athletica Inc., has signaled support for the departure of lead director David Mussafer while continuing to advocate for a broader overhaul of the company's leadership. The athleisure brand, which is currently operating without a permanent chief executive, announced that it has appointed Levi Strauss & Co. veteran Chip Bergh to its board. Bergh is expected to stand for election at the upcoming shareholder meeting, replacing Mussafer, who will exit at the end of his current three-year term. Wilson, who remains one of the largest independent shareholders with a 4.27% stake, characterized the recent board changes as insufficient to address deep-seated issues within the organization. > I want to be clear that while yesterday's announcement is a step in the right direction, glaring governance deficiencies remain. The founder further noted that the appointment of Bergh was underwhelming. This critique follows Wilson's previous efforts to influence the board's composition, including the nomination of three independent directors—Marc Maurer, Laura Gentile, and Eric Hirshberg—last year. The ongoing proxy battle comes as the apparel maker faces significant financial headwinds. Shares of the company declined by roughly 2% in premarket trading on Wednesday after management issued a cautious outlook for annual sales and earnings. The stock has plummeted by nearly two-thirds over the past two years, a period marked by design failures and a loss of market share. These difficulties eventually led to the resignation of CEO Calvin McDonald earlier this year, leaving the company in a state of transition.
