Lululemon Appoints Nike Exec Heidi O’Neill as CEO with $1.4M Salary
Lululemon named former Nike president Heidi O’Neill as CEO starting Sept. 8 with a $1.4 million base salary. The appointment arrives as the company braces for $380 million in tariffs and faces a 21% stock decline this year with a 5% drop in extended trading.
1. CEO Appointment and Terms
Lululemon’s board selected Heidi O’Neill as chief executive officer effective September 8, succeeding co-CEOs Meghan Frank and André Maestrini, who will return to their prior roles. O’Neill will be based in Vancouver and receive a $1.4 million base salary under her new contract.
2. Executive Background
O’Neill spent over two decades at Nike, most recently as president of consumer, product and brand overseeing global product development, brand strategy and marketing. She previously held a marketing role for Dockers at Levi Strauss & Co. and serves on the boards of Spotify Technology, Hyatt Hotels and Lithia & Driveway.
3. Tariff Costs and Stock Reaction
Lululemon has flagged $380 million in expected tariff costs for the year, contributing to a slowdown in growth. The stock has fallen roughly 21% year to date and declined more than 5% in extended trading following the CEO announcement.
4. Activist Pressure and Governance
Activist firm Elliott Investment Management holds over $1 billion in Lululemon shares and has been pressing for board changes. Founder and major shareholder Chip Wilson has also advocated for governance adjustments despite not holding an operational role.