lululemon founder criticizes board over leadership succession

Chip Wilson, founder and major shareholder of lululemon athletica inc. (NASDAQ: LULU), issued a statement criticizing the company's board following announced leadership changes at the athletic apparel retailer.

Wilson expressed concern about what he characterized as the board's failure in succession planning. "As one of the largest active shareholders of lululemon, I am deeply concerned about what appears to be a tremendous failure by the Board to competently plan for the future and manage an effective succession process," Wilson said in the statement.

The founder criticized the board's handling of outgoing CEO Calvin McDonald, noting lululemon's stock declined 62.8% over the past two years. Wilson stated the board showed "blatant disregard for its shareholders" in its praise for McDonald.

Wilson called for new independent directors with experience to lead the CEO search process. He argued the company needs "revitalization and an infusion of new skills to get back to being a product-first company that creates real, long-term shareholder value."

The statement indicated Wilson has been engaging with the company both publicly and privately about leadership concerns. He suggested the board does not understand the company's target customers or what drives shareholder value long-term.

Wilson expressed confidence in the lululemon brand and said he believes qualified CEO candidates exist across the retail and apparel sectors. He indicated he hopes to continue dialogue with the board about adding experienced directors before completing the CEO search.

The comments came in response to lululemon's announcement of leadership changes, though specific details of those changes were not provided in Wilson's statement.

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