Lululemon (NASDAQ: LULU) has reached a settlement agreement with founder Chip Wilson, who holds approximately 8.7% of the company’s outstanding common stock.
The deal establishes a framework for board changes and governance stability as the athletic apparel company heads into the remainder of 2026.
Former ESPN chief marketing officer Laura Gentile and former On co-CEO Marc Maurer will join Lululemon’s board following the company’s 2026 Annual Meeting of Shareholders.
The company also agreed to appoint an additional director with product and brand expertise in apparel by October 1, 2026, as part of a wider board refresh.
Executive chair Marti Morfitt said the board is “pleased to reach this agreement with Chip Wilson, which allows Lululemon to focus on continuing to strengthen its performance.”
Morfitt added that the settlement gives incoming CEO Heidi O’Neill “a clear path forward” to “reaccelerate growth, and deliver enhanced value for our shareholders.”
Wilson welcomed the agreement, saying the board additions and strategic adjustments represent “meaningful progress” towards restoring a product-first approach and unlocking “tremendous value for shareholders.”
Wilson also expressed confidence in the two incoming directors, saying “Laura and Marc will add value to Lululemon’s Board.”
As part of the settlement terms, Wilson agreed to customary standstill, non-disparagement and voting provisions lasting approximately 18 months, running until 30 days before the nomination deadline for the 2028 annual meeting.
Rather than receiving expense reimbursement, Lululemon and Wilson agreed to make donations supporting athletics, art and landscaping at Kitsilano Beach in Vancouver, where the company was originally founded.
Incoming director Gentile described her appointment as coming at a “pivotal moment” for the company, while Maurer said the board’s focus will be closely tied to “what the consumer wants and needs.”
The settlement resolves an extended period of tension between Wilson, who stepped away from leadership roles in 2013 and left the board in 2015, and the company’s current leadership over strategy and governance.
Just last week, Lululemon urged shareholders to back its new board nominees and labeled Wilson’s views as “outdated.”
