Lululemon in a regulatory filing declared that founder Chip Wilson’s right to appoint a board director has been terminated. According to the filing, Wilson violated terms of a 2014 agreement that had granted him that right, “so long as he owned at least 8.0 percent of our common stock and did not take any contesting stockholder action.”
Lululemon said Wilson “failed to observe the requirements of the support agreement relating to certain contesting stockholder actions.”
Wilson “informed the board that he did not agree with the board’s conclusions,” according to the April 24 filing.
Wilson founded the company in 1998 and still owns 9.4 percent of the company’s shares. He stepped down as chairman in December 2013 after causing an uproar for saying in an interview that Lululemon’s pants “don’t work for some women’s bodies.” He sold half his stake in 2014 and resigned from Lululemon’s board in early 2015 after a high-profile dispute with its directors.