In a show of discontent, REI Co-op members voted to reject the slate of candidates put forward by the company in this year’s Board of Directors elections.
The election results represent a victory for the REI Union, which urged members to vote against the uncontested slate of board candidates. Members were encouraged to vote “withhold” to protest REI’s decision to block two union-backed candidates from the ballot; its approach to unionization efforts; and the company’s endorsement of Trump’s Secretary of the Interior, which was retracted last month after backlash from members.
During an annual REI member meeting on Thursday, newly appointed REI CEO Mary Beth Laughton acknowledged the election results as a “clear sign to me that we have a big opportunity to actively seek out and listen to what our members and employees are telling us.”
“Going forward, I’m committed to elevating more member and employee voices more regularly,” said Laughton, a former executive at Nike and Athleta who took over as REI’s CEO on March 31.
The REI Union celebrated the election results, writing in a statement that “REI members and REI workers stood together to send a resounding message that it is time for the co-op to return to its core values.”
The company didn’t provide information on how many members cast ballots, or what percentage voted against the board-backed candidates. But the REI Union said it is aware of more than 115,000 members who voted by following a link on the union’s website, “likely making it the highest turnout for an election in REI history.”
REI is structured as a consumer cooperative, meaning any active member of the Washington-based outdoor retailer is eligible to vote in annual Board of Director elections. Any REI member can also nominate themselves to run for a board seat, but bylaw changes in the early 2000s stipulated that only candidates approved by the current board can appear on the ballot.
Some REI members have criticized the process as undemocratic and a departure from the company’s co-op roots. Most elections are noncompetitive, with members given only the option to vote Yes or “withhold” on the company’s nominees.
As a result, REI elections are typically quiet affairs — with low member turnout and an uncontested slate of candidates handpicked by the board. This year’s election was an exception.
Last fall, unionized REI members nominated two candidates to run for board seats: Tefere Gebre, chief program officer at the international advocacy group Greenpeace USA, and Shemona Moreno, a Seattle climate activist who leads the nonprofit 350 Seattle.
The labor-backed candidates ran extensive social media campaigns and gathered signatures from thousands of members asking the board to let them on the ballot. But when the board released its approved list of candidates for three open seats in March, Gebre and Moreno’s names were absent. The REI Union criticized the move as undemocratic, and called on members to vote “withhold” on the three board-backed candidates.
Two of the board’s candidates — PolicyLink CEO Michael McAfee and Elizabeth Huber, former senior vice president and CFO for Getty Images — were incumbent board members. The third was Monica Schwartz, executive vice president and chief digital officer of BJ’s Wholesale Club.
During Thursday's member meeting, REI Board Chair Chris Carr announced that members had voted to reject all three.
“We are disappointed with the outcome, especially because we’re losing two incumbent directors and also one promising new director,” Carr said.
If the number of “withhold” votes is greater than the number of “for” votes in an uncontested election, REI’s bylaws say the seat the candidate was running for will be considered vacant, and the remaining directors will then fill that vacancy by appointing someone from a slate chosen by the board.
Carr didn’t provide detail on what the board plans to do next, but said the three board-backed candidates “will not be appointed to the open seats.”
“These seats will remain vacant until the Board of Directors fills them,” Carr said.
In statements on Thursday, both Moreno and Gebre said they would be open to filling the vacancies.
Laughton, the new CEO, said REI will be “returning to its roots and putting members at the center of everything we do.”
The board election reflects a broader identity crisis facing REI, which has struggled to balance member input with business pressure during its growth from a scrappy outdoor cooperative to a nationwide outdoors supplier that did more than $3.5 billion in sales in 2023.
During the meeting, REI leaders choose to answer several questions submitted by members.
In response to a question about why the two union-backed candidates weren’t allowed on the ballot, the company said it can’t speak to specific individuals, but that each candidate goes through a “rigorous evaluation.” Carr stressed that all self-nominated candidates are considered, and that the board screens candidates for “relevant experience operating a business of similar size and scale to REI.”
One member asked about the ongoing contract negotiations, saying it seems “REI is stalling and will never reach a contract” with the 11 stores across the country that have voted to unionize since 2022. Unionized workers have accused REI of union-busting, retaliation and bad-faith bargaining, a claim the company denies.
In response, the company said it is negotiating in good faith, and that contracts take a long time.
Company leaders also reiterated their apology for endorsing Trump Secretary of the Interior Doug Burgum, who has been criticized by environmental advocates over his support for drilling on public lands. The company retracted its endorsement of Burgum in April.
Joe Mizrahi, the Secretary-Treasurer of UFCW 3000, which represents unionized REI workers in Bellingham, said in a statement Thursday that the election results should be a “wake-up call” for REI to “listen to workers and members who make this company successful” and “live up to the democratic co-op values you claim to value.”
During Thursday’s annual member meeting, which lasted a little under 40 minutes, board chair Carr thanked members for making their voices heard.
“As a co-op member, engagement and participation are foundational principles,” Carr said. “Your voice and participation helped to shape our direction, and this annual meeting is part of that. It reflects our shared commitment to transparency, accountability and cooperative action.”
