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Lululemon $LULU +0.13% reached an agreement with founder Chip Wilson on Wednesday, ending a proxy contest the billionaire had launched late last year against the company he started in 1998.
Two of Wilson's board nominees will join the company's directors: Marc Maurer, who previously served as co-CEO of On, and Laura Gentile, a former Chief Marketing Officer at ESPN. The company also agreed to add a third director with product and brand expertise in apparel by Oct. 1, the company said.
Rather than the expense reimbursement Wilson had originally sought for his proxy campaign, the two sides agreed that Lululemon would instead direct a donation to Kitsilano Beach in Vancouver — the city where the company got its start — earmarked for athletics, art, and landscaping, the company said.
Lululemon executive chair Marti Morfitt called the agreement a path forward for incoming CEO Heidi O'Neill and the leadership team. "We are pleased to reach this agreement with Chip Wilson, which allows lululemon to focus on continuing to strengthen its performance," Morfitt said in a statement. Wilson, for his part, said the incoming directors and strategic shifts the company had already undertaken "reflect meaningful progress toward restoring the company's product-first vision and unlocking tremendous value for shareholders."
