Lululemon Founder Decries CEO Pick

Shares of lululemon athletica (Vancouver, B.C.) have taken a major hit since the retailer unveiled plans on April 22 to bring an ex-Nike executive on board as its new CEO this September. And now, founder Chip Wilson (a major shareholder no longer active in the company’s day-to-day operations) has weighed in on the hire, characterizing the decision to bring Heidi O’Neill on to run the company as further evidence of “broken governance” by its board – and even more of a reason shareholders should elect three candidates he backed in an upcoming proxy vote. (Lululemon’s shares fell even further the day Wilson released his missive.)

“The existing board does not have the skillset to hire a world-class brand/product person who can deliver on the newest zeitgeist or style of the moment,” Wilson wrote in an extensive open letter to lululemon’s shareholders. “The market response to the hiring of Heidi O’Neill creates an unnecessarily challenging start for her, and her selection doubles down on the board’s broken strategy.”

This battle is expected to come to a head at lululemon’s upcoming annual meeting on June 25, when results of shareholders’ vote on whether to install Wilson’s preferred board candidates will be revealed.