Activist investor Elliott Investment Management has acquired a stake of over $1 billion in Lululemon Athletica and is proposing a potential CEO candidate. Lululemon’s stock surged 6% following the news of CEO Calvin McDonald stepping down amid a performance slump. Former Ralph Lauren executive Jane Nielsen is being considered for the role. Lululemon founder Chip Wilson has been urging for changes as the company faces increasing competition from brands like Vuori and Alo Yoga. Nielsen previously held roles at Ralph Lauren, Coach, and PepsiCo. Elliott has also taken significant stakes in companies like Workday and PepsiCo this year, as reported by The Wall Street Journal.

Read more at CNBC: Activist Elliott builds Lululemon stake, suggests CEO candidate