Lululemon says talks with founder Chip Wilson collapsed over escalating demands
Lululemon Athletica's negotiations with founder Chip Wilson have broken down due to his escalating demands. The company aimed to resolve a proxy fight but found Wilson's counterproposals to be significantly different from prior discussions. Wilson is advocating for the election of three new directors at the upcoming annual meeting, criticizing the brand's current direction.
- ▪Lululemon sought to settle a proxy fight with founder Chip Wilson but found his demands escalating.
- ▪Wilson's counterproposal included appointing three directors of his choosing and quarterly meetings with the new CEO.
- ▪The company has recently appointed two new directors and hired ex-Nike executive Heidi O'Neill as CEO.
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Open this photo in gallery:Mike Blake/ReutersShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountLululemon Athletica LULU-Q sought to settle its bitter proxy fight with Chip Wilson as recently as last week but balked at what it said were escalating demands from its founder, the athletic apparel company said in a regulatory filing on Monday.The company said it had delayed filing its definitive proxy statement in the hope of reaching a settlement with Wilson, who had issued counter-proposals to its term sheet last week.But the company said the counterproposal was “a significant departure from what had been discussed.” Wilson wanted the appointment of three directors chosen by him, including the immediate appointment of two of his nominees and a third from a pool…
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