Lululemon founder Chip Wilson publishes op-ed, criticizes board

By

Jennifer Braun

Published
Jun 8, 2016

Following Chip Wilson’s public critic of lululemon’s board last week, the Canadian yogawear founder published an op-ed in the Globe and Mail on Tuesday stating his discontent of the board’s adoption of “virtual” annual meetings and a need for change.  
 
As the largest shareholder of lululemon, Wilson stated in his letter how last week’s annual general meeting of stockholders “lasted all of 20 minutes and lacked any transparency”.

 
Wilson went on to criticize the board who has watched lululemon’s stock drop 8 percent, and urged the board to make changes: “I feel like I am listening to a replay of the Kodak board who could not get off the drug of milking the brand for cash and refused to take the risks necessary to perpetuate their position in the market they created,” Wilson wrote. “Our board needs to be thinking like Tesla and how we can create a brand, product, market and connectivity with our customer that is unique in a sea of apparel alternatives.”
 
Wilson stated that he hopes the company’s board will be more transparent, responsive and aligned with shareholders. He also reiterated his belief that the company should declassify the board so that directors are elected annually.

Ads

He ended his letter with a series of questions directed at the current lululemon board and management team: “So I ask, once again, does the current lululemon board and management team plan to get back to our original leadership position compared to our competitors, in a market we invented and built? If yes, by when, and what are the exact signs, metrics and signals we should be looking for to indicate your plan is working?”