Canadian retailer Lululemon Athletica (LULU) has resolved its years long battle with company founder Chip Wilson.
The Vancouver-based maker of athletic apparel said in a news release that it has entered into an agreement with Wilson that ends a messy public fight and proxy contest that had weighed on the company’s share price.
Under the deal, Lululemon has agreed to appoint two of Wilson’s nominees to its board of directors: former On (ONON) CEO Marc Maurer and former ESPN Chief Marketing Officer Laura Gentile.
In exchange, Wilson has agreed not to criticize the company for at least 18 months as it undertakes a global turnaround strategy after years of underperformance.
Wilson had asked the company to reimburse his expenses related to the proxy contest but has agreed instead to a donation to Kitsilano Beach in Vancouver where Lululemon was founded.
“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 board chair.
Wilson, who remains Lululemon’s largest individual shareholder, has been a vocal critic of the company and its management team in recent years.
The founder has gone so far as to take out an advertisement in The Wall Street Journal criticizing the company’s management team and calling for changes.
Wilson has faulted Lululemon’s leadership team for failed product launches, declining sales, and a slumping stock price. He publicly called for the ouster of former CEO Calvin McDonald.
The company now has a new incoming CEO in Heidi O’Neill, who previously worked at rival Nike (NKE).
Wilson said in his own statement that accepting his board appointees “reflect meaningful progress toward restoring the company’s product-first vision…”
The proxy fight between Wilson and Lululemon’s board was set to come to ahead at the company’s upcoming annual meeting in June. That fight has now been avoided.
LULU stock has declined 60% in the last five years to trade at $127.35 U.S. per share.
