Boston, MA 04/04/2013 (wallstreetpr) – In 2012, Michael Johnson the Herbalife Ltd (NYSE:HLF) (Current: $39.46, Up by 1.15%) Chairman and Chief Executive Officer received a compensation of $10.3 million which was less than what he had received from the company in 2011. His salary at that point of time had been commensurate with the value of the stock awards. In a proxy filing the nutrition company that is based in the Cayman Islands said that his salary Johnson was paid a salary of $1.24 million which was a 0.5 percent increase from that he had received in 2011. In addition to this he received company options that were in the range of $5 million as well as $3.71 million incentive compensation. This is the maximum award for the compensation that was linked to both, the earnings per share as well as the annual sales volume.
A prominent analyst said that the company fared badly on almost all counts last year. The EPS volumes had been affected, the income operating income targets and the volume points for that year have been calculated as per that and the numbers prove the results. Herbalife Ltd (NYSE:HLF) also confirmed that two new members have been nominated to the company board. Keith Cozza and Jonathan Christodoro both of who were billionaire Carl Icahn’s associates were nominated at the April 25 annual shareholder meeting. According to the filing, as of March 6, Icahn held a 15.6 percent stake in the company.
Company working criticized
He said that there are several strategic alternatives that he seeks to discuss with the company one of which is taking Herbalife private. Last month Bill Ackman the hedge fund manager and a rival stakeholder in company sold short 20 million Herbalife shares while and had argued that the company was nothing but a glamorized pyramid scheme and one which regulators should have shut down long ago. There are a large number of companies that operate on this kind of pyramid business strategy. The basic idea behind this business is that the every member has to sell the products that the company has to offer and make additional members as well. Every time any if those members sell a product the person who has introduced them into the company gets a commission.
Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.