The shares of Lululemon Athletica Inc. (NASDAQ:LULU) climbed 3.4% during the pre-market trading session on Wednesday, as the company put an end to its ongoing feud with founder Chip Wilson.
The athletic apparel company announced on Wednesday that it will appoint two of Wilson’s nominees, former On co-CEO Marc Maurer and ex-ESPN Chief Marketing Officer Laura Gentile, to its board, thus concluding a proxy battle that started late last year. Wilson, being the largest individual shareholder, was the initiator of this contest. An additional director with expertise in apparel brands and products will also be appointed by October.
In exchange, Wilson has agreed to abstain from publicly criticizing the company for approximately 18 months, among other conditions.
“We are pleased to reach this agreement with Chip Wilson, which allows Lululemon to focus on continuing to strengthen its performance,” said Marti Morfitt, Lululemon’s executive chair.
Meanwhile, Wilson expressed that the new appointments, along with strategic changes already implemented, “reflect meaningful progress toward restoring the company's product-first vision and unlocking tremendous value for shareholders.”
