This year witnessed more boardroom battles than ever, with Lululemon becoming the latest to see a fight as the year comes to a close.
- The data from the Harvard Law School Forum on Corporate Governance showed that activist investors had launched 17 proxy contests against S&P 500 companies and 57 against Russell 3000 companies as of Oct. 31.
- According to the data, consumer discretionary and health care were targeted with 10 and 12 contests, respectively, making them the most heavily targeted sectors in 2025.
- Chip Wilson’s nominee to the Lululemon board is Marc Maurer, the former Co-Chief Executive Officer of On Holding, where he led the company's rapid growth and increase in profitability.
Proxy fights are having a moment in corporate America, and Lululemon Athletica has now been pulled into the fray. The athleisure giant is facing a fresh challenge from its founder, Chip Wilson, as it grapples with uneven demand and a year marked by strategic stumbles and stock volatility.
In a familiar showdown between founders and incumbent leadership, Wilson has moved to nominate three independent directors, escalating a long-simmering public rift over Lululemon's direction and performance. Wilson has become increasingly vocal about his dissatisfaction with the company's current management, arguing that the brand has lost its edge at a time when competition in athletic wear is fiercer than ever.
Just two months ago, Wilson placed a self-funded advertisement in the Wall Street Journal and lambasted the company's leadership for prioritizing Wall Street metrics over product innovation and other missteps that he likened to a “plane crash”.
Wilson’s latest move underscores a broader trend playing out across U.S. boardrooms. According to the Harvard Law School Forum on Corporate Governance, proxy contests at public companies have doubled from last year, with a growing number of large-cap firms now in activists' crosshairs, a sign that shareholder activism has evolved into a persistent, board-level risk rather than an occasional flare-up.
Peak Of Proxy Battles
The data from the Harvard Law School Forum on Corporate Governance showed that activist investors had launched 17 proxy contests against S&P 500 companies and 57 against Russell 3000 companies as of Oct. 31. The data noted that these were the highest numbers recorded since 2018 and marking an unusually active third quarter of the year.
According to the Harvard Law School Forum, consumer discretionary was targeted with 10 contests, and health care with 12, making it the most heavily targeted sectors in 2025.
The study showed that the most prolific filers of proxy fights consistently cite the perceived undervaluation of their target company, coupled with their belief that incumbent leadership is failing to maximize shareholder value.
Other Activist Moves Of The Year
In September, Elliott disclosed a $4 billion stake in PepsiCo and began pushing the company to change its portfolio and improve its share price. The firm called out PepsiCo for its strategic missteps in its beverages business and for lagging behind peers such as Coca-Cola.
Earlier this year, Elliott had launched a boardroom fight with Phillips 66, saying the company’s stock could nearly double to $200 if it either sells or spins off its midstream business. Mantle Ridge last year revealed a roughly $1 billion stake in Air Products and had nominated directors to engage with the company in a board fight for the majority of this year.
The data by Harvard Law School Forum noted that of the 57 proxy fight campaigns launched in the first 10 months of 2025, only eight proceeded to a vote, with companies prevailing in five of those contests.
The other three produced partial wins for activists as Elliott secured two of four board seats at oil refiner Phillips 66, Mantle Ridge captured three of four seats at industrial gases and chemicals company Air Products & Chemicals, and Bulldog Investors gained one seat at land developer Tejon Ranch.
Lululemon’s Boardroom Nominees
Wilson’s nominee to the board is Marc Maurer, the former Co-Chief Executive Officer of On Holding, where he led the company's rapid growth and increase in profitability, with the Roger Federer-backed company also eating into shares of giants Nike and Adidas.
The other nominee is Laura Gentile, the former Chief Marketing Officer of ESPN, where she oversaw creative output, fan engagement, media strategy, event marketing and social media for all of ESPN's brands, platforms, shows and events.
The third director to be nominated is Eric Hirshberg, who was the former CEO of Activision, the largest segment of Activision Blizzard. Activision Blizzard's stock rose 500%, and Activision's segment profit nearly doubled during Hirshberg's close to eight years in the role.
An Unlikely Year For Lululemon
In December, during the company’s earnings, CEO Calvin McDonald announced his departure in January. Things did not go as well for him over the previous two years, with founder Wilson criticizing how Lululemon was being led.
McDonald has been overseeing Lululemon as the U.S. market remains challenging for the company, with tariffs adding to worries as demand took a hit from a lack of innovation in comfort and style. Even McDonald's acknowledged that the products have become irrelevant and that product life cycles run too long in many core categories.
What Is Retail Thinking?
Retail sentiment on Lululemon was in the ‘bearish’ compared to the ‘bullish territory a month ago, with message volumes at ‘extremely low’ levels, according to data from Stocktwits.
The retail user message count on the stock has jumped by over 320% in the last year, and the number of users adding the ticker to their watchlist on Stocktwits has increased by 22%.
Shares of Lululemon have declined by over 44% so far this year, underperforming Nike and the U.S.-listed stock of Adidas, both of which have fallen 19% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
