Lululemon (LULU) founder Chip Wilson hopes for change on company’s board in a proxy fight launched Monday as it searches for a new CEO, per the Wall Street Journal.
Wilson, who founded the company and served as CEO from 1998 to 2005, nominated three candidates to join the helm, including former On Running (ONON) co-CEO Marc Maurer (who stepped down earlier this year), former ESPN chief marketing Officer Laura Gentile and former Activision CEO Eric Hirshberg.
Wilson still owns 9.9 million Lululemon shares, holding an 8.4% stake, according to a report from Morningstar.
The stock climbed about 1% following the report, after a nearly 45% decline so far this year.
Earlier this month, Lululemon announced current CEO Calvin McDonald plans to step down from his role and as a member of the company’s board of directors, effective Jan. 31, 2026. He assumed the position in 2018, but the company has struggled in recent years as competitors like Alo, Vuori, Athleta, and others have entered the arena.
For the interim, CFO Meghan Frank and chief commerical officer André Maestrini will serve as interim co-CEOs.
Chair of the Board Marti Morfitt was also named executive chair, effective immediately, the company said “to ensure the continued execution of the company’s near- and long-term growth strategy during the leadership transition” in the release.
Following the announcement, activist investor Elliott Investment Management took a $1 billion stake in the company and is pushing for former Ralph Lauren executive Jane Nielsen to take the helm.
In Lululemon’s latest results, the company beat expectations.
Morningstar senior equity analyst David Swartz told Yahoo Finance the new CEO will have a “tall order.”
“A new CEO is going to have to come in and try to get back to where it used to be just a few years ago and try to get back to that growth period that it had really between about 2018 and 2023 or so, and that’s going to be a tall order for any CEO,” he said.