Michael O. Johnson will return to his old job as CEO of Herbalife Nutrition Ltd HLF on an interim basis to replace Richard Goudis, who resigned following comments the company said were inconsistent with its standards and culture.
Johnson, who headed the company from 2003 until 2017 and is now its executive chairman, will serve until the board names a permanent CEO chosen from Herbalife's senior leadership team, the company said in a Tuesday press release.
Goudis became CEO at the Los Angeles-based supplement and health products company in June 2017. He had been CFO at the company from 2004-2010 and then chief operating officer before being named CEO.
Herbalife: CEO Comments 'Do Not Reflect' Culture
Herbalife said Goudis’ departure wasn’t related to financial reporting issues and that it stems from comments he made prior to taking over the C-suite that were “contrary to the company’s expense-related policies and business practices.”
The company said the comments were “inconsistent with Herbalife Nutrition's standards and do not reflect the company's culture.”
No further detail was given on the nature of the comments.
Johnson Served During Ackman Fight
Returning CEO Johnson headed the company when Herbalife agreed to pay $200 million to settle Federal Trade Commission claims that it misled distributors about how much money they could make selling its supplements. The regulatory attention was spurred by allegations from activist investor Bill Ackman, who no longer has a stake in the company.
Herbalife also announced announced preliminary volume point results Tuesday that it said were up 11.6 percent worldwide in the fourth quarter from Q4 2017.
Herbalife shares were down 0.36 percent at $58.18 at the time of publication Wednesday.
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Photo courtesy of Herbalife.
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